[Including a record of transmittal of Acts subsequent to sine die adjournment]

ST'ie Jourlal o
OF THE

"GHouse of representatives

SECOND SPECIAL SESSION-"B" of 1986-1988

Monday, September 21, 1987

Journal of the House of Representatives for a Special Session of the Seventy-third House since Statehood in 1845,
convened by Proclamation of the Governor and held at the Capitol in the City of Tallahassee in the State of Florida,
on Monday, September 21, 1987.

The House was called to order by the Honorable Jon Mills, Speaker,
at 9:00 a.m.

Prayer

The following prayer was offered by Representative Fran Carlton:
Our most gracious Heavenly Father, thank You for the privilege of
serving in this place. May we always be aware of the trust that we
have been given. We're reminded of those 55 brave men who, 200 years
ago, gave us the Constitution of the United States. They pledged their
lives, all their earthly belongings, and their sacred trust, that we
might enjoy the freedoms that we now all too often take for granted.
Thank You for those men and for the vision they shared for our
Nation.
Oh God, give us a vision for the future of Florida. Unite us in a
oneness of purpose to do only that which is true and right and good for
the people that we serve and for our great state. Take away the
anxiety, the partisan politics, the self interest. May each member of
the House, the Senate, the Governor, the special interests and even the
press catch sight of the vision and unite in the quest to do what is best
for Florida.
Father, You promised in Your Word that if we commit our works to
You that You will direct us. We commit ourselves and this special
session to You and humbly ask that You give us Your wisdom, Your
knowledge and Your blessing. Amen.
The following proclamation was read:

PROCLAMATION

State of Florida
Executive Department
Tallahassee

TO THE HONORABLE MEMBERS OF THE FLORIDA SENATE
AND THE HOUSE OF REPRESENTATIVES:
WHEREAS, the Tenth Legislature of the State of Florida, under the
Florida Constitution, 1968, Revision, convened in regular session for
the year 1987 on April 7, 1987, and adjourned on June 6, 1987, and
WHEREAS, the Tenth Legislature of the State of Florida, while
convened in regular session for the year 1987, passed and the Governor
signed Committee Substitute for Senate Bill 777, which imposed a
general tax on the sale and use of services consumed or enjoyed in the
state, and
WHEREAS, on May 12, 1987, the Governor requested that the
Supreme Court of Florida advise him on the constitutionality of
Committee Substitute for Senate Bill 777, and
WHEREAS, on July 14, 1987, the Supreme Court of Florida advised
the Governor that Committee Substitute for Senate Bill 777 does not
violate any provision of the Florida Constitution, and

WHEREAS, there is nevertheless widespread public controversy
with respect to the imposition, administration, and economic effect of
the general tax on the sale and use of services consumed or enjoyed in
the state, and
WHEREAS, public confidence in the tax policy of the state is
essential if the commonly shared goals of improved public works,
public health, public safety, and public education in the state are to be
achieved, and
WHEREAS, action by the Legislature with respect to the general tax
on the sale and use of services consumed or enjoyed in the state is
required in order to restore the confidence of the public in the tax
policy of the state.
NOW, THEREFORE, I, BOB MARTINEZ, Governor of the State of
Florida, in obedience to my constitutional duty and by virtue of the
power authority vested in me by Article III, Section 3(c)(1), Florida
Constitution, do hereby proclaim as follows:
1. That the Legislature of the State of Florida is hereby convened in
special session at the Capitol, Tallahassee, Florida, commencing
at approximately 9:00 a.m. on Monday, the 21st day of September,
1987, and ending at noon on Wednesday, the 23rd of September,
1987.
2. That the Legislature is convened for the purpose of considering
such action with respect to the recently enacted general tax on
the sale or use of services consumed or enjoyed in the state as may
be appropriate under the circumstances.
IN TESTIMONY WHEREOF, I have
hereunto set my hand and caused the
"Great Seal of the State of Florida to be
affixed to this Proclamation convening
the Legislature in special session at the
Capitol, this 3rd day of September,
1987.
BOB MARTINEZ
Governor

TEST:
JIM SMITH
Secretary of State
The following Members were recorded present:

Excused: Representatives Martinez and Ostrau; Representative
Morse, out of the country.
Under Rule 5.17, Representative Gaffney was suspended on July 25,
1987 and shall remain suspended, pending final appellate action or
until the expiration of his term, whichever occurs first.
A quorum was present.

Pledge
The Members pledged allegiance to the Flag.

The Journal
The Journal of June 5, 1987, Regular Session, was approved as
corrected.

Placed in the Committee on Rules & Calendar, the Speaker having
ruled the measure was outside the purview of the Call.

By Representative Gonzalez-Quevedo-
HB 3-B-A bill to be entitled An act relating to immigration;
creating the "Florida Immigration Act of 1987"; providing legislative
purpose; providing definitions; providing for representation of persons
desiring immigration and nationality services; prohibiting persons
from engaging in the business of immigration consultant unless such
persons are attorneys or are otherwise authorized; prohibiting the
unauthorized practice of law under the act; providing for the powers
and duties of the Attorney General with respect to the act; providing
that the filing of required information under the act is a public record;
providing penalties for violation of the act; providing legislative intent
with respect to contracts; providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having
ruled the measure was outside the purview of the Call.

By Representative Tobiassen-
HB 4-B-A bill to be entitled An act relating to a straw ballot
referendum on the sales tax; proposing certain questions to the voters
of Florida and placing said questions on the ballot in the presidential
primary election, March 8, 1988; providing an effective date.
Referred to the Committees on Finance & Taxation and Appropria-
tions.

By Representative Glickman-
HB 5-B-A bill to be entitled An act relating to a straw ballot
referendum on taxation; proposing certain taxing alternatives to the
voters of Florida and placing a statement on the presidential primary
ballot, March 8, 1988; providing an effective date.
Referred to the Committees on Finance & Taxation and Appropria-
tions.

By Representative Cosgrove-
HB 6-B-A bill to be entitled An act relating to tax on sales, use and
other transactions; amending s. 212.0592, F.S.; providing an exemp-
tion from the tax on services for consideration received for the right to
publish certain written material and for photography services by
photojournalists; providing an effective date.
Referred to the Committees on Finance & Taxation and Appropria-
tions.

By Representative Meffert-
HB 7-B-A bill to be entitled An act relating to pari-mutuel
wagering; amending section 13 of chapter 87-38, Laws of Florida;
providing legislative findings; changing the qualifications for the
licensure of simulcasting facilities; providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having
ruled the measure was outside the purview of the Call.

By Representative Meffert-
HB 8-B--A bill to be entitled An act relating to alcoholic beverages;
amending s. 563.022, F.S.; changing the definition of "manufacturer"
for purposes of provisions relating to beer distributors and manufactur-
ers; amending s. 5 of chapter 87-63, Laws of Florida, to correct an
erroneous cross-reference; providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having
ruled the measure was outside the purview of the Call.

By Representatives Silver, Bloom, Lippman-

HB 9-B-A bill to be entitled An act relating to weapons and
firearms; amending s. 790.25, Florida Statutes, to restrict the carrying
of a firearm or electric weapon or device on or about the person;
providing misdemeanor punishment; providing an effective date.

Placed in the Committee on Rules & Calendar, the Speaker having
ruled the measure was outside the purview of the Call.

HB 10-B-A bill to be entitled An act relating to taxation; repealing
s. 212.059, F.S., which provides for levy of the tax on sales, use and
other transactions on the sale and use of services; repealing
s. 212.0591, F.S., which provides rules of construction with respect to
said tax; repealing s. 212.0592, F.S., which provides exemptions from
said tax; repealing s. 212.0593, F.S., which provides for administration
of the exemption for services sold in this state for use outside this
state; repealing s. 212.0594, F.S., which provides special provisions
applicable to the tax on construction services; repealing s. 212.0595,
F.S., which provides special provisions applicable to tax on advertising;
amending s. 212.0598, F.S., which specifies conditions under which
certain air carriers may elect to be subject to the tax on services and
tangible personal property; removing application to services; amending
s. 212.02, F.S.; revising definitions; amending ss. 212.031, 212.054,
212.06, 212.07, 212.08, 212.095, 212.12, 212.13, 212.14, 212.17, 212.18,
212.21, and 212.61, F.S.; revising and deleting exemptions from the tax
on rental, lease, or granting a license for use of real property; revising
an exemption for fabrication labor associated with video tapes or
motion pictures; providing an exemption for feminine hygiene prod-
ucts; revising an exemption for film rentals; specifying that profes-
sional, insurance, and personal services are exempt; revising and
conforming language; specifying application of tax to certain persons
who manufacture factory-built buildings; repealing s. 212.11(1)(d),
F.S., which authorizes quarterly returns for certain dealers registered
as service providers; repealing s. 32(1) of chapter 87-6, Laws of Florida,
relating to self-accrual of tax for purchasers of services; repealing
ss. 38, 47, and 109 of chapter 87-6, Laws of Florida, relating to
construction with respect to disclosure of privileged information, a
study of service transactions by the Department of Revenue, and a tax
hot-line; amending s. 212.235, F.S.; revising provisions relating to the
State Infrastructure Trust Fund and renaming the fund; amending
s. 215.32, F.S., relating to funding of the State Infrastructure Fund;
amending s. 201.15, F.S., to conform; repealing ss. 206.87(1)(b) and
206.875(3), F.S.; removing the levy of an additional tax on special
fuels; amending s. 207.026, F.S., relating to allocation of the tax on
commercial motor vehicles, to conform; repealing s. 57.071(3), F.S.,
which provides for the inclusion of sales or use tax on legal services
within court costs; repealing s. 57.111(3)(d)3., F.S., which expands the
definition of "small business party" with respect to civil actions or
administrative proceedings initiated by state agencies to include
certain persons contesting the legality of any assessment of tax
imposed for the sale or use of services; repealing s. 120.575(1)(b), F.S.,
which provides procedures for taxpayer contest proceedings to contest
the legality of any assessment of the tax on services; amending
s. 120.57, F.S., to conform; repealing s. 120.65(5), F.S., which provides
for the appointment of a panel to be the hearing officer in such
taxpayer contest proceedings; repealing s. 213.30, F.S., which provides
compensation for persons who provide information relating to a
violation of tax laws; providing certain recordkeeping requirements
and providing for the application of penalties; amending s. 33 of
chapter 87-6, Laws of Florida; revising provisions relating to emergen-
cy rules; providing intent; providing for rules; providing for emergency
rules; providing effective dates.

Referred to the Committees on Finance & Taxation and Appropria-
tions.

HB 11-B-A bill to be entitled An act relating to family foster
homes; amending s. 409.175, F.S.; requiring the Division of Risk
Management of the Department of Insurance to provide liability

insurance to certain individuals who own or operate family foster
homes; providing appropriations; providing an effective date.

3

Placed in the Committee on Rules & Calendar, the Speaker having
ruled the measure was outside the purview of the Call.

By Representative Hawkins-
HB 12-B-A bill to be entitled An act relating to Collier County;
amending s. 21 of chapter 61-2034, Laws of Florida, as created by s. 3
of chapter 83-391, Laws of Florida; authorizing the East Naples Fire
Control District to issue bonds which mature less than 12 months from
the date of issue without referendum approval; providing an effective
date.
Placed in the Committee on Rules & Calendar, the Speaker having
ruled the measure was outside the purview of the Call.

By Representative Carpenter-
HB 13-B-A bill to be entitled An act relating to Hillsborough
County; relating to the Civil Service Act; amending section 4 of
chapter 85-424, Laws of Florida, to remove personnel of the Hills-
borough County school board from mandatory application of the Civil
Service Act and to provide that said school board by interlocal
agreement with the civil service board may participate in the civil
service system; amending sections 6 and 13 of chapter 85-424, Laws of
Florida, and section 14 of chapter 85-424, Laws of Florida, as amended,
to delete references to said school board; amending section 15 of
chapter 85-424, Laws of Florida, to delete reference to said school
board and to reduce the membership of the review committee;
repealing chapter 85-423, Laws of Florida, relating to definitions and
classes of certain school board employees; providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having
ruled the measure was outside the purview of the Call.

By Representatives Carpenter, Lippman, Sample-
HB 14-B-A bill to be entitled An act relating to the state
retirement system; amending s. 121.101, F.S.; revising the formula for
cost-of-living adjustments to monthly benefits; deleting obsolete lan-
guage pertaining to certain supplementary cost-of-living adjustments;
providing for retroactivity; providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having
ruled the measure was outside the purview of the Call.

By Representatives Hill, Mortham, Lombard-
HB 15-B-A bill to be entitled An act relating to waiver of sovereign
immunity; amending s. 768.28, F.S., providing for the inclusion of
foster parents and shelter parents as agents of the state for liability
purposes; providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having
ruled the measure was outside the purview of the Call.

By Representative Gardner (by request)-
HB 17-B-A bill to be entitled An act relating to taxation; repealing
s. 212.059, F.S., which provides for levy of the tax on sales, use and
other transactions on the sale and use of services; repealing
s. 212.0591, F.S., which provides rules of construction with respect to
said tax; repealing s. 212.0592, F.S., which provides exemptions from
said tax; repealing s. 212.0593, F.S., which provides for administration
of the exemption for services sold in this state for use outside this

F.S., which provides special provisions applicable to tax on advertising;
amending s. 212.0598, F.S., which specifies conditions under which
certain air carriers may elect to be subject to the tax on services and
tangible personal property; removing application to services; amending
s. 212.02, F.S.; revising definitions; amending ss. 212.031, 212.054,
212.06, 212.07, 212.08, 212.095, 212.12, 212.13, 212.14, 212.17, 212.18,
212.21, and 212.61, F.S.; revising and deleting exemptions from the tax
on rental, lease, or granting a license for use of real property; revising
an exemption for fabrication labor associated with video tapes or
motion pictures; providing an exemption for feminine hygiene prod-
ucts; revising an exemption for film rentals; specifying that profes-
sional, insurance, and personal services are exempt; revising and
conforming language; specifying application of tax to certain persons
who manufacture factory-built buildings; repealing s. 212.11(1)(d),
F.S., which authorizes quarterly returns for certain dealers registered
as service providers; repealing s. 32(1) of chapter 87-6, Laws of Florida,
relating to self-accrual of tax for purchasers of services; repealing
ss. 38, 47, and 109 of chapter 87-6, Laws of Florida, relating to
construction with respect to disclosure of privileged information, a
study of service transactions by the Department of Revenue, and a tax
hot-line; amending s. 212.235, F.S.; revising provisions relating to the
State Infrastructure Trust Fund and renaming the fund; amending
s. 215.32, F.S., relating to funding of the State Infrastructure Fund;
amending s. 201.02, F.S.; reducing the tax on deeds and other
instruments relating to real property; amending s. 201.15, F.S.;
revising the distribution of the tax; repealing ss. 206.87(1)(b) and
206.875(3), F.S.; removing the levy of an additional tax on special
fuels; amending s. 207.026, F.S., relating to allocation of the tax on
commercial motor vehicles, to conform; repealing s. 57.071(3), F.S.,
which provides for the inclusion of sales or use tax on legal services
within court costs; repealing s. 57.111(3)(d)3., F.S., which expands the
definition of "small business party" with respect to civil actions or
administrative proceedings initiated by state agencies to include
certain persons contesting the legality of any assessment of tax
imposed for the sale or use of services; repealing s. 120.575(1)(b), F.S.,
which provides procedures for taxpayer contest proceedings to contest
the legality of any assessment of the tax on services; amending
s. 120.57, F.S., to conform; repealing s. 120.65(5), F.S., which provides
for the appointment of a panel to be the hearing officer in such
taxpayer contest proceedings; repealing s. 213.30, F.S., which provides
compensation for persons who provide information relating to a
violation of tax laws; providing certain recordkeeping requirements
and providing for the application of penalties; amending s. 33 of
Chapter 87-6, Laws of Florida; revising provisions relating to emergen-
cy rules; providing intent; providing for rules; providing for emergency
rules; providing effective dates.
Referred to the Committees on Finance & Taxation and Appropria-
tions.

In compliance with the provisions of Article III, Section 8(b) of the
State Constitution, I am transmitting to you for consideration of the
House the following 1987 vetoed bills, Regular Session. The Governor's
objections are attached thereto.
CS/HB 204 Relating to Electrolysis
HB 443 Relating to the Arts
HB 460 Relating to Judicial Circuits
HB 630 Relating to Collier County
HB 679 Relating to Hillsborough County
HB 1336 Relating to Public Meetings and Records
Sincerely,
JIM SMITH
Secretary of State

E OF REPRESENTATIVES

July 1, 1987

Honorable George Firestone
Secretary of State

Dear Mr. Secretary:
By the authority vested in me as Governor of Florida, under the
provisions of Article III, Section 8 of the Constitution of the State of
Florida, I do hereby withhold my approval of and transmit to you with
my objections Committee Substitute for House Bill 204 enacted by the
Tenth Legislature of Florida under the Florida Constitution, 1968
Revision, during the Regular Session of 1987, and entitled:
An act relating to electrolysis; creating the "Electrolysis Prac-
tice Act"; providing legislative intent; providing definitions;
creating the Electrolysis Council under the Board of Medicine in
the Department of Professional Regulation; providing member-
ship and terms; providing powers and duties of the board and
council; requiring licensure of electrologists and providing a
civil penalty; providing for application and examination for
licensure; providing for temporary permits and temporary
licenses; providing for license renewal; providing for reactiva-
tion, renewal, and expiration of an inactive license; providing for
establishment and use of fees; authorizing disciplinary actions
against licenses; providing exemptions; providing for continuing
education; providing for the approval of schools of electrology;
providing for curriculum; providing for licensure of instructors;
providing for infection control; providing for maintenance of the
physical environment of electrology offices; providing for a code
of ethics and advertisements; providing for application of the
act; providing for review and repeal; providing an effective date.
Committee Substitute for House Bill 204 creates an Electrolysis
Council under the Medical Examiners Board in the Department of
Professional Regulation and further provides for licensure of this
practice.
This legislation was directed to the question of the transmission of
the AIDS virus by this hair removal process. At this time, we have no
knowledge of any documented cases of the transmission of the AIDS
virus by this technique. However, under Chapter 381 F.S. the Florida
Department of Health and Rehabilitative Services has the authority to
promulgate rules to address the concerns of sanitation in the
electrolysis process. I have requested that Secretary Coler begin to
study this question and provide and propose any needed rules. By
addressing this issue by way of an existing procedure yet another layer
of state bureaucracy will be avoided.
For the above reasons, I am withholding my approval of Committee
Substitute for House Bill 204, Regular Session of the Legislature,
commencing April 7, 1987, and do hereby veto thb same.
Sincerely,
BOB MARTINEZ
Governor
-and the above vetoed bill (1987 Regular Session), together with
the Governor's objections thereto was referred to the Committee on
Rules & Calendar.

July 4, 1987

Honorable George Firestone
Secretary of State

Dear Mr. Secretary:
By the authority vested in me as Governor of Florida, under the
provisions of Article III, Section 8 of the Constitution of the State of
Florida, I hereby withhold my approval of and transmit to you with my
objections House Bill 443, enacted by the Tenth Legislature of Florida
under the Florida Constitution, 1968 Revision, during the Regular
Session of 1987, and entitled:
An act relating to the arts; amending s. 265.285, F.S.; changing
the prohibition of eligibility of appointed Florida Arts Council
members for reappointment to apply after serving two terms
instead of one; providing an exception to the Fine Arts
Endowment Program; providing for a reallocation of moneys in
the Fine Arts Endowment Trust Fund; providing for the creation
of county aviation authorities; providing definitions; providing
for a governing board and the membership thereof; prescribing

September 21, 1987

JOURNAL OF THE HOUSE

the rights, duties, and authority and the method of budgetary
approval of said aviation authority; authorizing said authority
to construct, acquire, establish, improve, extend, enlarge, recon-
struct, equip, maintain, repair, and operate, within the territori-
al boundaries of the county, projects as defined in said act,
consisting of airport or aviation facilities and related facilities of
all kinds for land and sea planes, or any combination of two or
more such projects; providing for the transfer to the jurisdiction,
control, and supervision of the authority of all existing projects
owned or controlled by the county; prescribing the powers and
duties of the county commission of said county and of said
authority; authorizing the issuance by said authority of revenue
bonds of the authority, payable solely from revenues, to pay all
or part of the cost of the acquisition, construction, extension, or
enlargement of a project or projects; authorizing the issuance of
revenue refunding bonds of said authority and the issuance of a
single issue of revenue bonds of said authority for the purposes
of paying all or part of the cost of acquiring, constructing,
extending, or enlarging a project or projects and for the purpose
of refunding any revenue bonds or revenue certificates which
shall then be outstanding and shall be payable from the
revenues of any existing project or projects; providing that no
general debt of the county shall be incurred in the exercise of
any of the powers granted by this act; authorizing said authority
to fix, regulate, and collect rates and charges for the services
and facilities furnished by any project under its control, and to
pledge the revenue of any such project to the payment of such
bonds; providing for the execution of a trust agreement or other
similar agreements or arrangements securing the payment of
such bonds without mortgaging or encumbering any such
project; authorizing expenditures of funds by the county;
providing for proposed changes to county comprehensive plan;
providing for trust funds; providing for power of eminent
domain; providing for effect of county ordinances and application
of act to other laws; providing for execution of contracts, leases,
and other legal instruments; providing for cooperation between
municipalities, county, and authority; prohibiting conflict of
interest; providing severability, providing an effective date.

House Bill 443 embraces two distinct subjects having no natural and
logical connection. Sections 1, 2 and 3 of the bill concern the Florida
Arts Council and the Fine Arts Endowment Trust Fund, and those
sections amend sections 265.285, 265.603 and 265.605, Florida Stat-
utes. Sections 4 through 25 of House Bill 443 provides for the creation
of county aviation authorities. I find there is no factual or logical
connection between the distinct subjects of the Florida Council on Arts
and county aviation authorities. Sections 4 through 25 of the act are
not even remotely germane to the purposes or objects found in the
remainder of the act. There is nothing in common between the two
subjects. The subject of Sections 1, 2 and 3 of the Act has no cogent
relationship with the subject of sections 4 through 25 of the Act, and
the object of Sections 1 through 3 is separate and disassociated from
the object of Section 4 through 25. Bunnell v. State, 453 So.2d 808 (Fla.
1984); State ex rel Landis v. Thompson, 120 Fla. 860, 163 So. 270
(1935).

The purpose of the "one subject" requirement found in the first
clause of Article III, Section 6 was best explained by the Supreme
Court of Florida in Colonial Inv. Co. v. Nolan, 131 So. 178 (Fla. 1930)
as follows:

The object of this constitutional provision, which in substance
has been placed in practically all of the constitutions of the
several states, was to prevent hodgepodge, logrolling, and
omnibus legislation. It had become quite common for legislative
bodies to embrace in the same bill incongruous matters having
no relation to each other, or to the subject specified in the title,
by which means measures were often adopted without attracting
attention. And frequently such distinct subjects, affecting di-
verse interests, were combined in order to unite the members
who favored either in support of all. (at 179)

September 21, 1987

July 1, 1987

Honorable George Firestone
Secretary of State

Dear Mr. Secretary:
By the authority vested in me as Governor of Florida, under the
provisions of Article III, Section 8 of the Constitution of the State of
Florida, I do hereby withhold my approval of and transmit to you with
my objections House Bill 460 enacted by the Tenth Legislature of
Florida under the Florida Constitution, 1968 Revision, during the
Regular Session of 1987, and entitled:
An act relating to judicial circuits; amending s. 26.021, F.S.,
providing that at least one judge in the tenth judicial circuit
shall reside in Highlands County; providing applicability;
providing an effective date.
House Bill 460, amends Section 26.021, Florida Statutes, requiring
that at least one judge of the tenth judicial circuit reside in Highlands
County. This residency requirement is above and beyond that set forth
in Article V, Section 8 of the Florida Constitution.
Article V, Section 8 of the Florida Constitution requires only that a
circuit judge reside in the territorial jurisdiction of his court. House
Bill 460 would impose the additional qualification that at least one
judge of the tenth judicial circuit reside in Highlands County, thereby
modifying the Florida Constitution by legislative enactment.
In State v. Thomas, a case relating to the residency requirement of
school board members, the Florida Supreme Court stated that statutes
imposing additional qualifications for office are unconstitutional where
the basic document of the constitution itself has already undertaken to
set forth those requirements. State v. Thomas, 293 So.2d 40, 42 (Fla.
1974). Article V, Section 8 of the Florida Constitution has already set
forth the residency requirements for judges.
For the above reasons, I am withholding my approval of House Bill
460, Regular Session of the Legislature, commencing April 7, 1987,
and do hereby veto the same.
Sincerely,
BOB MARTINEZ
Governor
-and the above vetoed bill (1987 Regular Session), together with
the Governor's objections thereto was referred to the Committee on
Rules & Calendar.

July 1, 1987

Honorable George Firestone
Secretary of State
Dear Mr. Secretary:

This constitutional provision did not appear in the first three By the authority vested in me as Governor of Florida, under the
constitutions of Florida, and during those years the practice of provisions of Article III, Section 8 of the Constitution of the State of

OF REPRESENTATIVES 5

"logrolling" occurred. The Supreme Court of Florida defined "logroll-
ing" as:
A practice under which the legislature could include in a single
act matters important to the people and desired by the Governor
and other matters opposed by the Governor or harmful to the
welfare of the State, with the result that in order to obtain the
constructive or desired matter the Governor had to accept the
unwanted portion.
Green v. Rawls, 122 So.2d 10, 13 (Fla. 1960).
It is obvious that House Bill 443 violates the single subject
requirement of Article III, Section 6 of the Florida Constitution.
For the above reason, I am withholding approval of House Bill 443,
Regular Session of the Legislature, commencing April 7, 1987, and do
hereby veto the same.
Sincerely,
BOB MARTINEZ
Governor
-and the above vetoed bill (1987 Regular Session), together with
the Governor's objections thereto was referred to the Committee on
Rules & Calendar.

JOURNAL OF THE HOUSE OF REPRESENTATIVES

Florida, I do hereby withhold my approval of and transmit to you with
my objections House Bill 630 enacted by the Tenth Legislature of
Florida under the Florida Constitution, 1968 Revision, during the
Regular Session of 1987, and entitled:
An act relating to Collier County; providing specified authority
with respect to the duties of the property appraiser; providing an
effective date.
House Bill 630 is a local bill creating additional duties of the
property appraiser of Collier County. These duties include the securing
of patents, copyrights and trademarks on his work products, and the
selling or leasing of such work products.
Article III, Section 11(a)(1) of the Florida Constitution prohibits
special laws pertaining to the duties of officers except officers of
municipalities, chartered counties, special districts or local governmen-
tal agencies. The property appraiser of Collier County is a constitu-
tional officer who does not fall within the exceptions to the prohibition.
Thus, a special law pertaining to the duties of the Collier County
property appraiser violates Article III, Section 11(a)(1) of the Florida
Constitution. Furthermore, allowing the property appraiser to copy-
right a computer program developed by him in the course of his work
would violate Florida's Public Records Law, Chapter 119, Florida
Statutes, unless such program could be classified as "sensitive
agency-produced data processing software." See, section 119.07(3)(r),
Florida Statutes.
For the above reasons, I am withholding my approval of House Bill
630, Regular Session of the Legislature, commencing April 7, 1987,
and do hereby veto the same.
Sincerely,
BOB MARTINEZ
Governor
-and the above vetoed bill (1987 Regular Session), together with
the Governor's objections thereto was referred to the Committee on
Rules & Calendar.

Honorable George Firestone July 1, 1987
Secretary of State
Dear Mr. Secretary:
By the authority vested in me as Governor of Florida, under the
provisions of Article III, Section 8 of the Constitution of the State of
Florida, I do hereby withhold my approval of and transmit to you with
my objections House Bill 679 enacted by the Tenth Legislature of
Florida under the Florida Constitution, 1968 Revision, during the
Regular Session of 1987, and entitled:
An act relating to Hillsborough County; relating to the Civil
Service Act; amending section 4 of chapter 85-424, Laws of
Florida, to delete reference to the Hillsborough County school
board and to provide that said school board by interlocal
agreement with the civil service board may participate in the
civil service system; amending sections 6 and 13 of chapter
85-424, Laws of Florida, and section 14 of chapter 85-424, Laws
of Florida, as amended, to delete references to said school board;
amending section 15 of chapter 85-424, Laws of Florida, to
delete reference to said school board and to reduce the member-
ship of the review committee; repealing chapter 85-423, Laws of
Florida, relating to definitions and classes of certain school
board employees; providing an effective date.
House Bill 679 is intended to amend Chapter 85-424, Laws of
Florida, in order to allow the Hillsborough County School Board to
participate in the civil service system. In addition, the bill would
repeal Chapter 85-423, Laws of Florida, which defines specific classes
of school board employees.
While I take no exception to the intent underlying this bill, I am
concerned that the bill contains a technical flaw which would render a
result not intended by the Legislature. Specifically, as it now reads,
the bill would amend Chapter 84-424, Laws of Florida. Chapter 84-424,
Laws of Florida, has no relevance to the subject matter addressed in

the bill and it is apparent that the Legislature intended to amend
Chapter 85-424, Laws of Florida. In light of this defect, I am

withholding approval of House Bill 679, Regular Session of the
Legislature, commencing on April 7, 1987, and do hereby veto the
same.
Sincerely,
BOB MARTINEZ
Governor
-and the above vetoed bill (1987 Regular Session), together with
the Governor's objections thereto was referred to the Committee on
Rules & Calendar.

June 25, 1987

Honorable George Firestone
Secretary of State
Dear Mr. Secretary:

By the authority vested in me as Governor of Florida, under the
provisions of Article III, Section 8 of the Constitution of the State of
Florida, I do hereby withhold my approval of and transmit to you with
my objections House Bill 1336 enacted by the Tenth Legislature of
Florida under the Florida Constitution, 1968 Revision, during the
Regular Session of 1987, and entitled:
An act relating to public meetings and records; amending
s. 286.011, F.S.; exempting certain meetings of governmental
agencies from the requirement that they be open to the public;
establishing criteria for such meetings; providing an effective date.
House Bill 1336 would amend Section 286.011, Florida Statutes, the
"Sunshine Law," to provide an exception to the general requirement
that the public be afforded access to meetings where governmental
bodies conduct official business. Specifically, the bill would allow
government officials to meet in private with their attorney in order to
discuss pending litigation. The bill would impose a requirement that
the conversations be recorded and later made public after the litigation
is resolved.
I am deeply concerned that this bill will have a negative effect on
government in Florida through its alteration of the Sunshine Law. When
it enacted the Sunshine Law several years ago, the Legislature correctly
perceived a need for Florida government to instill in the people a new
confidence in the manner in which the public business is conducted. The
years following the enactment of the law bear out the wisdom of the
Legislature in this regard, for public trust in Florida government has
steadily grown in those years. It is, therefore, a very heavy burden that
any bill carries which would restrict the scope of the Sunshine Law and
put in jeopardy public confidence in its governing institutions.
While the purpose of House Bill 1336 is, in isolation, relatively
innocuous, it undeniably weakens the purifying effect of the Sunshine
Law. In my view, it would be imprudent to allow the erosion of the
Sunshine Law to begin in this manner, and thus risk the loss of the
public trust, after Florida government has paid for that trust through
years spent acquiring the discipline necessary to adhere to the strictures
of the law. In short, I believe that the business of the state should remain
the business of its citizens and be subject to their scrutiny as the law now
provides. For the foregoing reasons, I am withholding approval of House
Bill 1336, Regular Session of the Legislature, commencing on April 7,
1987, and do hereby veto the same.
Sincerely,
BOB MARTINEZ
Governor
-and the above vetoed bill (1987 Regular Session), together with
the Governor's objections thereto was referred to the Committee on
Rules & Calendar.

Waiver of Rule 6 for Committee Meetings and Bills
On motion by Rep. Gardner, Chairman, without objection, the rules
were waived and the Committee on Finance & Taxation was given
permission to meet at 10:20 a.m. in Morris Hall to take up a proposal
from the Governor that deals with the repeal of the sales tax on
services and related issues, and to consider PCB 1-B.
On motion by Rep. Carpenter, without objection, the rules were
waived and all committees were given permission to meet immediately
upon recess.

September 21, 1987

6

September 21, 1987 JOURNAL OF THE HOUSE OF REPRESENTATIVES 7

Announcement Recessed
Rep. Bell, Chairman, announced a meeting of the Committee on On motion by Rep. Carpenter, the House recessed at 9:26 a.m. to
Appropriations at 2:00 p.m. in Morris Hall. reconvene upon call of the Speaker.

7Tlej JounqalOFTH

VIouse of Iepreseitatives

SECOND SPECIAL SESSION-"B" of 1986-1988

Tuesday, September 22, 1987

The House was called to order by the Speaker at 6:28 p.m.

Prayer

The following prayer was offered by Representative Bloom:
Dear Lord, during difficult times, we seek You. Now we need Your
guidance over these next days and weeks, as we attempt to do what is
right for Florida's citizens and for Florida's future. But, we need Your
guidance, O Lord, at all times. As those who observe the Old
Testament traditions prepare for the New Year 5748, we ask that all of
us, of all faiths, and all of our loved ones, may be inscribed in the Book
of Life and that we may usher in a New Year of peace and harmony for
all. May our future actions in these hallowed chambers do Thy will, O
Lord. Amen.
The following Members were recorded present:

Excused: Representatives Gordon, Abrams, Davis, Drage, Frankel,
McEwan, Meffert, Silver, Press, Woodruff; Representatives Morse out
of the country; Rochlin out of the state; Ostrau due to oral surgery.
A quorum was present.

Pledge

The Members pledged allegiance to the Flag.

House Physician
Dr. David Johnson of Tallahassee was serving in the Clinic today
upon invitation of Representative Rudd.

The Journal

The Journal of September 21, 1987, was approved as corrected.

Introduction and Reference

By Representative Bankhead-
HR 18-B-A resolution commending Monica Farrell for her accom-
plishments in becoming Miss Florida.
Placed in the Committee on Rules & Calendar, the Speaker having
ruled the measure was outside the purview of the Call.

By Representatives Bloom, Hargrett, Diaz-Balart-
HB 19-B-A bill to be entitled An act relating to the "Respiratory
Care Act"; amending s. 468.357, F.S.; extending the time period for
certain persons to take the examination under the act; providing an
effective date.
Placed in the Committee on Rules & Calendar, the Speaker having
ruled the measure was outside the purview of the Call.

By Representatives Silver, Bloom, Burke-
HB 20-B-A bill to be entitled An act relating to corporations;
creating s. 607.355, F.S., providing a procedure by which the domesti-
cation of non-United States corporations may be accomplished by filing
with the Secretary of State; providing definitions; providing for
certification; amending s. 607.361, F.S., providing for filing fees;
providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having
ruled the measure was outside the purview of the Call.

By Representative Ireland-
HB 21-B-A bill to be entitled An act relating to Lee County;
amending s. 3, ch. 74-522, Laws of Florida; providing that certain
members of the sheriffs department are subject to the civil service act;
amending s. 15, ch. 74-522, Laws of Florida, as amended by s. 1, ch.
87-446, Laws of Florida; requiring the Lee County Sheriffs Depart-
ment to reduce the amount of the health insurance costs it pays for
certain retired personnel under certain circumstances; providing an
effective date.
Placed in the Committee on Rules & Calendar, the Speaker having
ruled the measure was outside the purview of the Call.

By Representative Friedman-
HB 22-B-A bill to be entitled An act relating to the Attorney
General; directing the Attorney General to act on behalf of the State
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JOURNAL OF THE HOUSE OF REPRESENTATIVES

Board of Administration at certain stockholder meetings; providing an
effective date.
Placed in the Committee on Rules & Calendar, the Speaker having
ruled the measure was outside the purview of the Call.

Communication

The following amended proclamation was read:

PROCLAMATION
State of Florida
Executive Department

Tallahassee
(Amendment to Proclamation dated September 3, 1987)
TO THE HONORABLE MEMBERS OF THE FLORIDA SENATE
AND THE HOUSE OF REPRESENTATIVES:
WHEREAS, on the 3rd day of September, 1987, a Proclamation of
the Governor was issued convening a Special Session of the Florida
Legislature for the purpose of considering appropriate action on the
general tax on the sale or use of services consumed or enjoyed in the
state; commencing at 9:00 a.m., Monday, September 21, 1987, and
extending through noon, Wednesday, September 23, 1987; and
WHEREAS, it is in the best interest of the citizens of the State of
Florida to amend the Proclamation of September 3, 1987, in order to
expand the call of the Special Session so that the Legislature may
consider the additional matters set forth below; and
WHEREAS, it is in the best interest of the citizens of the State to
extend the length of the Special Session in order to permit full and
adequate consideration of the items set forth below.
NOW, THEREFORE, I, BOB MARTINEZ, Governor of the State of
Florida, by virtue of the power and authority vested in me by Article
III, Section 3(c)(1), Florida Constitution, do hereby proclaim as follows:
Section one (1) of the Proclamation of the Governor dated September
3, 1987, is hereby amended to read:
1. That the special session of the Legislature of the State of Florida
as mentioned above is hereby extended through 12:00 noon on Friday,
the 2nd day of October, 1987.
Section two (2) of the Proclamation of the Governor dated September
3, 1987, is hereby amended to read:
2. That the Legislature of the State of Florida is convened for the
sole and exclusive purpose of considering the following:
(a) Consideration of such action with respect to the recently enacted
general tax on the sale or use of services consumed or enjoyed in the
state as may be appropriate under the circumstances.
(b) Consideration of such action with respect to any tax or exemption
from a tax permitted by the Constitution or laws of Florida as may be
appropriate under the circumstances.
(c) Consideration of any such action with respect to the process by
which the budget of the State of Florida is prepared and enacted into
law as may be appropriate under the circumstances.
Except as amended by this Proclamation, the Proclamation of the
Governor dated September 3, 1987, is ratified and confirmed.
IN TESTIMONY WHEREOF, I have
hereunto set my hand and caused the
Great Seal of the State of Florida to be
affixed to this proclamation at the Capi-
B^ tol, this 22nd day of September, 1987.

BOB MARTINEZ
Governor

ATTEST:

JIM SMITH
Secretary of State

Messages from the Senate

The Honorable Jon Mills, Speaker
I am directed to inform the House of Representatives that the Senate
has adopted SCR 20-B and requests the concurrence of the House.

Joe Brown, Secretary

By Senator Barron-
SCR 20-B-A concurrent resolution providing for adjournment of
both houses of the Legislature for more than 72 consecutive hours.
Be It Resolved by the Senate of the State of Florida, the House of
Representatives Concurring:
The Florida Senate and the Florida House of Representatives shall
stand adjourned from Wednesday, September 23, 1987 at 11:00 a.m.
until Monday, September 28, 1987 at 1:00 p.m.
-was read the first time by title. On motions by Rep. Carpenter, the
rules were waived by two-thirds vote and the concurrent resolution
was read the second time in full, adopted and under the rule
immediately certified to the Senate.

Announcement
Rep. Gardner, Chairman, announced a meeting of the Committee on
Finance & Taxation at 10:00 a.m. tomorrow.

The following prayer was offered by Representative Grindle:
O Lord, we as Representatives, stand before You this beautiful day,
believing in our commitment to serve our constituents and all citizens
of the State of Florida, and pledge to abide by good judgment, devotion
and belief in You. Help us understand the true meaning of the
responsibility we carry as elected Representatives. Give each of us
direction to use our special gifts You have provided for us and send
Your spirit and grace to give us wisdom so that all members of this
great state will benefit through our actions. Amen.

Excused: Representatives Clark, Friedman, Gordon, Smith; Repre-
sentative Silver, due to death in family; Representative Dunbar,
attending a business meeting in Alaska; Representatives Rochlin and
Sansom, out of the state; Representative Jamerson, due to illness;
Representative Diaz-Balart, due to a late plane; Representative
Gonzalez-Quevedo, to attend Florida International University business
meeting; Representatives D. L. Jones and Thomas, their medical
practices; Representative Souto, to attend a Company meeting.
A quorum was present.

Pledge

The Members pledged allegiance to the Flag.

The Journal

The Journal of September 22 was approved as corrected.

Introduction and Reference

First Reading by Publication
HCR 23-B-Withdrawn prior to introduction.

By Representative Burnsed-
HB 24-B-A bill to be entitled An act relating to traffic control;
amending s. 316.302, F.S., providing exceptions to the amount of time
certain drivers of agricultural vehicles may be on duty; providing that
the amendments to s. 316.302, F.S., shall be null and void under
certain circumstances; providing for the effect of such a contingency;
providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having
ruled the measure was outside the purview of the Call.

By Representatives Patchett and Messersmith-
HB 25-B-A bill to be entitled An act relating to the state budgetary
process; amending ss. 216.011, 216.015, 216.0152, 216.0154, 216.0158,
216.016, 216.0162, 216.023, 216.031, 216.0445, 216.046, 216.081,
216.141, 216.163, 216.164, 216.167, 216.172, 216.181, 216.292,
216.301, 235.41, F.S.; providing additional definitions; prescribing
duties of the Department of General Services and Department of
Education in maintaining an inventory of state-owned and state-occu-
pied facilities; prescribing duties of the Governor's office and of other
agencies in submitting budget requests and information relating
thereto; prescribing duties of the Governor's office with respect to
coordination and monitoring budget requests; prescribing content of
budget requests and of the recommended budget; prescribing legisla-
tive authority to submit letters of intent relating to appropriations
acts; creating s. 216.175, F.S.; prescribing duties of the Legislature
with respect to the general appropriations act; prescribing powers of
the Governor with respect to the general appropriations act; repealing
ss. 216.043, 216.044, 216.045, 216.111, F.S., to remove redundancies to,
and language superseded by, other amendments to chapter 216;
providing an effective date.
Referred to the Committee on Appropriations.

By Representatives Gardner and Burke-
HB 26-B-A bill to be entitled An act relating to taxation; creating
s. 212.061, F.S., providing for the levy of a tax on the sale and use of
professional services; providing for collection and remittance thereof;
creating s. 212.062, F.S.; providing rules of construction with respect to
said tax; creating s. 212.063, F.S.; providing exemptions from said tax;
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JOURNAL OF THE HOUSE OF REPRESENTATIVES

creating s. 212.064, F.S.; providing for administration of the exemption
for services sold in this state for use outside this state; providing for
exempt purchase permits and affidavits; requiring dealers to maintain
monthly logs; providing for application of certain penalty provisions;
providing for refunds; amending s. 212.02, F.S.; specifying when the
sale of a service is a sale for resale; excluding certain items from the
definition of "sales price"; specifying those activities included within
the meaning of "services"; amending the definition of "SIC"; amending
s. 212.031, F.S.; repealing an exemption for lease or rental of property
for qualified production services; amending s. 212.04, F.S.; creating an
exemption for admissions to events sponsored by nonprofit and
community organizations; providing that the rate of tax on sales, use
and other transactions shall be increased to 5.25% effective January 1,
1988, and to 5.5% effective January 1, 1989; amending s. 212.055, F.S.;
repealing and replacing the Local Government Infrastructure Surtax;
allowing imposition of the tax with an extraordinary vote of the
governing body of the county, or by referendum; amending s. 212.0598,
F.S.; revising special provisions relating to air carriers; amending
s. 212.06, F.S.; revising an exemption for fabrication labor associated
with videotapes or motion pictures; amending s. 212.235, F.S.; auth-
orizing use of moneys in the State Infrastructure Fund to match local
moneys dedicated for infrastructure and renaming the fund; amending
s. 215.32, F.S.; relating to funding of the State Infrastructure Fund;
amending s. 201.02, F.S.; providing for the levy of an additional tax on
deeds and other instruments relating to real property; amending
s. 201.15, F.S.; providing for payment of such additional tax into the
State Infrastructure Fund; revising the current distribution of the tax;
repealing ss. 206.87(1)(b) and 206.875(3), F.S.; removing the levy of an
additional tax on special fuels; amending s. 207.026, F.S., relating to
allocation of the tax on commercial motor vehicles, to conform;
repealing s. 31(3), (4) and (5) of chapter 87-6, Laws of Florida, relating
to an exemption for certain improvements to real property; removing
provisions relating to a required application, a time limitation, and a
report to the Legislature by the Department of Revenue; amending
s. 33 of chapter 87-6, Laws of Florida; revising provisions relating to
emergency rules; amending s. 36 of chapter 87-6, Laws of Florida;
revising provisions relating to waiver of penalties, repealing s. 47 of
chapter 87-6, Laws of Florida, relating to a study of service transactions
by the Department of Revenue; amending s. 28 of chapter 87-101, Laws
of Florida; authorizing certain positions for the Division of Administra-
tive Hearings; creating s. 163.3203, F.S.; imposing limitations on
specified new impact fees levied by local governments; requiring the
Department of Revenue to notify certain registered dealers of the repeal
of the tax on certain services; requiring the Department to refund dealer
registration fees for certain dealers no longer required to collect tax;
creating the Commission on Financing Florida's Future; providing
membership and duties; providing effective dates.

Referred to the Committees on Finance & Taxation and Appropria-
tions.

Comments by Speaker
The Speaker said, "Those of you who are back here again realize the
importance of what we will be doing this week. There will be a
considerable amount of committee work. If in fact, you have commit-
tees which need to work, which would have normally met next week,
we're in a position to waive the rules and allow you to meet, so we will
be getting as much work done while we're here as possible. Represen-
tative Gardner will announce to you the status of the Finance and
Taxation Committee meeting, the Appropriations Committee and staff
will be meeting with the Governor's staff concerning the budget reform
issue. We will see if we have a modified call based on the last Attorney
General opinion. There is some indication we may."

Notice of Committee Meeting
Rep. Gardner, Chairman, announced a meeting of the Committee on
Finance & Taxation tomorrow at 10:00 a.m. in Morris Hall to take up
the following bills: HBs 1-B, 17-B, PCB 1-B, HB 26-B.

Committees Allowed to Meet
On motion by Rep. Patchett, without objection, the rules were
waived and Committees were allowed to meet on two hours notice for
this week and, when they need to meet.

Prime Sponsor
HB 1-B-Reddick

Recessed

On motion by Rep. Carpenter, the House recessed at 1:15 p.m. for the
purpose of holding committee meetings, and conducting other House
business to reconvene upon call of the Speaker.

The House was called to order by the Speaker at 4:59 p.m.
Prayer
The following prayer was offered by Representative Reddick:
Our Heavenly Father, we thank You for allowing us to assemble in
this place. Our Father, we ask that You would make our presence felt
in the State and Your presence felt here. For as surely as our
constituents are dependent upon us to use sound reasoning and
judgment in this gathering, we are dependent upon You to lead us in
our endeavors. With the words of the prophet Isaiah, "Come let us
reason together, saith the Lord." We ask You to give us Your guidance.
Please give us strength, courage and love in whatever is done here
today. And Father, we ask that You would help keep us humble and
mindful of the hills from whence all our help comes. Father, we ask an
additional prayer for the family of Representative Silver suffering the
loss of his grandmother. All these prayers we ask in Your name and for
Your sake, Amen.
The following Members were recorded present:

Excused: Representative Souto, attending a Company meeting in
Atlanta; Representative Dunbar, attending a business meeting in
Alaska; Representative McEwan, until 7:10 p.m.
A quorum was present.

Pledge

The Members pledged allegiance to the Flag.

The Journal

The Journal of September 28, 1987 was approved as corrected.

Communications

The Honorable Jon Mills September 24, 1987
Speaker of the House
The Honorable John Vogt
President of the Senate
Gentlemen:
This is in response to your joint request for my opinion on
substantially the following question:
Does a proposed enactment which would repeal Ch. 87-6, Laws
of Florida, as amended by Chs. 87-72 and 87-101, Laws of
Florida, but not provide for revenues to replace those lost by
repealing this legislation or provide for amendment of Ch. 87-98,
Laws of Florida, violate s. 1, Art. VII, State Const.?
The legislation to which you refer has imposed a general tax on the
sale and use of services in Florida. Your letter relates that the passage
of this measure was accomplished to raise sufficient revenue to defray
the expenses of the state for fiscal year 1987-1988, which commenced
on July 1, 1987. The Appropriations Act (Ch. 87-98, Laws of Florida)
was passed in anticipation of receiving revenue from the general sales
and use tax contained in Ch. 87-6, Laws of Florida, as amended supra.
As you have noted, a repeal of Ch. 87-6, without provision for
additional revenues or amendment to the Appropriations Act, will
result in a budget deficit for the current fiscal year.
Section 1, Art. VII, State Const., makes provision for the levy of
certain taxes, preempts certain forms of taxation to the state, requires
that money be paid from the State Treasury only pursuant to a lawful
appropriation by the Legislature and provides in subsection (d) that
provisionin shall be made by law for raising sufficient revenue to
defray the expenses of the state for each fiscal period."
The constitutional provisions contained in s. 1, Art. VII, State
Const., charge the Legislature with a duty not only to raise revenue by
taxation but to raise sufficient revenues to defray those expenses the
state may lawfully incur during each fiscal period. The Legislature is
further required to ensure that state expenses shall not exceed the
revenue raised.
The current language of s. 1(d), Art. VII, State Const., is taken from
s. 2, Art. IX, State Const. 1885, which provided that: "The Legislature
shall provide for raising revenue sufficient to defray the expenses of
the State ... for each fiscal year, and also a sufficient sum to pay the
principal and interest of the existing indebtedness of the State ."
While my research has revealed no judicial construction of the present

12

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JOURNAL OF THE HOUSE OF REPRESENTATIVES

constitutional provision which is relevant to this determination,
decisions construing predecessor provisions of the Constitution having
the same import as current provisions are sources or authority for the
construction of the successor provisions.'
In State ex rel. Kurz v. Lee, 163 So. 859 (Fla. 1935), The Supreme
Court of Florida considered a mandamus action against the Comptrol-
ler by a state employee who asserted a claim to his contractual salary
payment. This payment was to be made from the General Revenue
Fund in conformity with the 1935 General Appropriations Act. It
appeared that, after having enacted a general appropriations bill and
providing sufficient revenues to meet those expenses, the Legislature
had made subsequent, additional appropriations which would have
produced a deficit in the general appropriations statute. The Comptrol-
ler's defense in not making payment of this obligation was that it was
his duty to withhold the salary payment until the Comptroller could
determine how to proportionately diminish the compensation on
account of insufficient funds in the State Treasury to pay both the
original appropriation and those made subsequently. The Court
determined that the Comptroller's position was untenable as it
contemplated unconstitutional action by the Legislature in not meet-
ing its "mandatory constitutional duty" to provide sufficient revenues
to meet state expenses pursuant to the predecessor provision to s. 1,
Art. VII, State Const. As the Court stated:
Presumably, the Legislature does not undertake to make an
appropriation of any funds not actually or potentially in hand.
This is so since the making of an appropriation without having
provided revenues from some source to meet it, or without any
right to anticipate the accrual otherwise of funds in the treasury
to enable the appropriation to be discharged by an actual
disbursement of funds when it is due to be paid, would be the
creation of an illegal state debt which would not constitute a
current expense of the state inasmuch as it would have to be
provided for by subsequent revenue legislation.2
Further, the Court stated that "the Constitution contemplates that
state expenses shall not exceed the revenues provided by law to be
raised for each fiscal year to defray the current expenses of the state
for the fiscal period, and it is mandatory that [s. 1, Art. VII] of the
Constitution shall be observed by ... the Legislature."3
In the absence of judicial precedent, the Court in State v. Lee, supra,
relied on contemporaneous construction of the constitutional provisions
"by affected officials of the state and the responsible departments of
the state government charged with the duty of interpreting and
observing [them] .."4 and stated that:
[B]y a contemporaneous and consistently adhered to construc-
tion by all departments of the state government, legislative,
executive, and judicial, [the provisions of s. 1, Art. VII, State
Const.] evidence] a definite state fiscal policy and purpose, and
have been regarded as imposing an inescapable constitutional
duty on each regular session of the Florida Legislature to
ascertain and set forth in a general appropriation bill what are
the current expenses of the state required to sustain its officials
and agencies ... and to make in such general appropriation
measure adequate appropriations of money to enable the state's
laws to be executed. "5
Contemporaneous construction of s. 1, Art. VII, State Const., by the
legislative and executive branches of state government reveals that
those branches have interpreted this section to impose a duty to
balance state revenues and expenditures.
As the Governor noted in his letter requesting the opinion of the
Justices of the Florida Supreme Court on the constitutionality of Ch.
87-6, Laws of Florida, "[i]n furtherance of [s. l(d), Art. VII and s. l(a),
Art. IV, State Const.], I am required to submit to the Legislature a
recommended budget which contains sufficient revenues to meet my
recommended appropriations and to amend my recommendations if
it comes to my attention that revenue sources are insufficient to fund
the appropriations. "6
With regard to contemporaneous construction of this constitutional

mandate by the legislative branch of state government, I note that the
Legislature, in Special Session in December, 1984, passed Senate Bill

1A (Ch. 84-549, Laws of Florida) repealing the unitary tax but
replacing the revenues lost thereby.
It is my opinion that s. 1, Art. VII, State Const., contains a two-fold
mandate to the Legislature: to provide for the raising of sufficient
revenues to meet the lawful expenses of the state and to spend within
the limits of that revenue which is raised. Thus, the Legislature would
not be fulfilling its constitutional mandate if it were to repeal Ch. 87-6,
Laws of Florida, as amended by Chs. 87-72 and 87-101, Laws of
Florida, without providing for replacement revenues or readdressing
the 1987 Appropriations Act to reduce appropriations to meet a
reduction in anticipated revenues.
Sincerely,
Robert A. Butterworth
Attorney General

1See, Weber v. Smathers, 338 So.2d 819 (Fla. 1976), and In re Advisory
Opinion the Governor, 112 So.2d 843 (Fla. 1959).
2State ex rel. Kurz v. Lee, supra at 868.
3Id. at 862.
"4Id. at 863.
"5Id. And see, AGO 75-246, citing State v. Lee, supra, for the proposition that
the Legislature has the exclusive power of deciding how, when, and for what
purpose state funds shall be applied in carrying on state government, except
where the constitution controls to the contrary.
6See, Letter of May 12, 1987, from Governor Bob Martinez to Chief Justice
Parker Lee McDonald and the Justices of the Supreme Court of Florida.

The following proclamation was read:

PROCLAMATION
State of Florida
Executive Department
Tallahassee
(Second Amendment to Proclamation dated September 3, 1987)
TO THE HONORABLE MEMBERS OF THE FLORIDA SENATE
AND THE HOUSE OF REPRESENTATIVES
WHEREAS, on the 3rd day of September, 1987, a Proclamation of
the Governor was issued convening a Special Session of the Florida
Legislature for the purpose of considering appropriate action on the
general tax on the sale or use of services consumed or enjoyed in the
state; commencing at 9:00 a.m., Monday, September 21, 1987, and
extending through 12:00 noon, Wednesday, September 23, 1987; and
WHEREAS, on the 22nd day of September, 1987, an amendment was
issued extending this Special Session through 12:00 noon, on Friday,
the 2nd day of October and adding additional matters for the
Legislature's consideration; and
WHEREAS, it is in the best interest of the citizens of the State of
Florida to amend the Proclamation of September 22, 1987, in order to
further expand the call of the Special Session so that the Legislature
may consider the additional matter set forth below; and
WHEREAS, it is in the best interest of the citizens of the State to
extend the length of the Special Session in order to permit full and
adequate consideration of the items set forth below.
NOW, THEREFORE, I, BOB MARTINEZ, Governor of the State of
Florida, by virtue of the power and authority vested in me by Article
III, Section 3(c)(1), Florida Constitution, do hereby proclaim as follows:
Section two (2) of the Proclamation of the Governor dated September
3, 1987, is hereby amended to read:
2. That the Legislature of the State of Florida is convened for the
sole and exclusive purpose of considering the following:
(a) Consideration of such action with respect to the recently enacted

general tax on the sale or use of services consumed or enjoyed in the
state as may be appropriate under the circumstances.

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September 30, 1987

JOURNAL OF THE HOUSE OF REPRESENTATIVES

(b) Consideration of such action with respect to any tax or exemption
from a tax permitted by the Constitution or laws of Florida as may be
appropriate under the circumstances.
(c) Consideration of any such action with respect to the process by
which the budget of the State of Florida is prepared and enacted into
law as may be appropriate under the circumstances.
(d) Consideration of such action with respect to amending Chapter
87-98, Laws of Florida, as may be appropriate under the circum-
stances.
Except as amended by this Proclamation, the Proclamation of the
Governor dated September 3, 1987, is ratified and confirmed.
IN TESTIMONY WHEREOF, I have
hereunto set my hand and caused the
Great Seal of the State of Florida to be
affixed to this proclamation at the Capi-
tol, this 28th day of September, 1987.
BOB MARTINEZ
Governor
ATTEST:
JIM SMITH
Secretary of State

Report of the Committee on Rules & Calendar

The Honorable Jon Mills
Speaker, House of Representatives

September 30, 1987

Sir:
Your Committee on Rules & Calendar herewith submits as the
Special and Continuing Order Calendar under Rule 8.16 beginning
Wednesday, September 30, 1987, consideration of the following bill:
HB 26-B-Sales Tax on Services
A quorum of the Committee was present in person, and a majority of
those present agreed to the above Report.
Respectfully submitted,
Carl Carpenter, Jr., Chairman
On motion by Rep. Carpenter, without objection, the rules were
waived and the above report was adopted.

Special and Continuing Orders

HB 26-B-A bill to be entitled An act relating to taxation; creating
s. 212.061, F.S., providing for the levy of a tax on the sale and use of
professional services; providing for collection and remittance thereof;
creating s. 212.062, F.S.; providing rules of construction with respect to
said tax; creating s. 212.063, F.S.; providing exemptions from said tax;
creating s. 212.064, F.S.; providing for administration of the exemption
for services sold in this state for use outside this state; providing for
exempt purchase permits and affidavits; requiring dealers to maintain
monthly logs; providing for application of certain penalty provisions;
providing for refunds; amending s. 212.02, F.S.; specifying when the
sale of a service is a sale for resale; excluding certain items from the
definition of "sales price"; specifying those activities included within
the meaning of "services"; amending the definition of "SIC"; amending
s. 212.031, F.S.; repealing an exemption for lease or rental of property
for qualified production services; amending s. 212.04, F.S.; creating an
exemption for admissions to events sponsored by nonprofit and
community organizations; providing that the rate of tax on sales, use
and other transactions shall be increased to 5.25% effective January 1,
1988, and to 5.5% effective January 1, 1989; amending s. 212.055, F.S.;
repealing and replacing the Local Government Infrastructure Surtax;
allowing imposition of the tax with an extraordinary vote of the
governing body of the county, or by referendum; amending s. 212.0598,
F.S.; revising special provisions relating to air carriers; amending
s. 212.06, F.S.; revising an exemption for fabrication labor associated
with videotapes or motion pictures; amending s. 212.235, F.S.; auth-
orizing use of moneys in the State Infrastructure Fund to match local
moneys dedicated for infrastructure and renaming the fund; amending
s. 215.32, F.S.; relating to funding of the State Infrastructure Fund;

amending s. 201.02, F.S.; providing for the levy of an additional tax on
deeds and other instruments relating to real property; amending
s. 201.15, F.S.; providing for payment of such additional tax into the
State Infrastructure Fund; revising the current distribution of the tax;
repealing ss. 206.87(1)(b) and 206.875(3), F.S.; removing the levy of an
additional tax on special fuels; amending s. 207.026, F.S., relating to
allocation of the tax on commercial motor vehicles, to conform;
repealing s. 31(3), (4) and (5) of chapter 87-6, Laws of Florida, relating
to an exemption for certain improvements to real property; removing
provisions relating to a required application, a time limitation, and a
report to the Legislature by the Department of Revenue; amending
s. 33 of chapter 87-6, Laws of Florida; revising provisions relating to
emergency rules; amending s. 36 of chapter 87-6, Laws of Florida;
revising provisions relating to waiver of penalties, repealing s. 47 of
chapter 87-6, Laws of Florida, relating to a study of service transac-
tions by the Department of Revenue; amending s. 28 of chapter 87-101,
Laws of Florida; authorizing certain positions for the Division of
Administrative Hearings; creating s. 163.3203, F.S.; imposing limita-
tions on specified new impact fees levied by local governments;
requiring the Department of Revenue to notify certain registered
dealers of the repeal of the tax on certain services; requiring the
Department to refund dealer registration fees for certain dealers no
longer required to collect tax; creating the Commission on Financing
Florida's Future; providing membership and duties; providing effective
dates.
-was read the second time by title.
The Committee on Finance & Taxation offered the following
amendment:
Amendment 1-On page 3, line 26, insert:
Section 1. Effective January 1, 1988, sections 212.059, 212.0591, and
212.0595, Florida Statutes, as created by chapter 87-6, Laws of Florida,
and amended by chapters 87-72 and 87-101, Laws of Florida, are
hereby repealed.
Section 2. Effective January 1, 1988, sections 212.0592 and 212.0593,
Florida Statutes, as created by chapter 87-6, Laws of Florida, and
amended by chapter 87-101, Laws of Florida, are hereby repealed.
Section 3. Effective November 1, 1987, section 212.0594, Florida
Statutes, as created by chapter 87-101, Laws of Florida, is hereby
repealed.
Section 4. Effective November 1, 1987, paragraphs (f), (g), (h), and
(aa) of subsection (22) of section 212.02, Florida Statutes, as created by
chapter 87-6, Laws of Florida, are hereby repealed.
Section 5. Effective January 1, 1988, paragraph (e) of subsection (7)
of section 212.08, Florida Statutes, 1986 Supplement, as created by
chapter 87-6, Laws of Florida, and amended by chapter 87-101, Laws of
Florida, is amended to read:
212.08 Sales, rental, use, consumption, distribution, and storage tax;
specified exemptions.-The sale at retail, the rental, the use, the
consumption, the distribution, and the storage to be used or consumed
in this state of the following are hereby specifically exempt from the
tax imposed by part I of this chapter.
(7) MISCELLANEOUS EXEMPTIONS.-
(e) Film rentals.-Film rentals are exempt when an admission is
charged for viewing such film, and license fees and direct charges for
films, videotapes, and transcriptions used by television or radio
stations or networks are exempt. However,. this exemption shall net be
eeonstred to exempt the sale e* nse of advceising. (renumber
subsequent sections)
Rep. Gardner moved the adoption of the amendment, which was
adopted. The vote was:
Yeas--114

Votes after roll call:
Yeas-Clements
Explanation of Vote
The vote button was pushed to vote yea, the green light came on but
print-out was no vote.
Representative S. L. Clements, Jr.
The Committee on Finance & Taxation offered the following title
amendment:
Amendment 2-On page 3, line 22, insert: repealing s. 212.059,
F.S., which provides for levy of the tax on sales, use and other
transactions on the sale and use of services; repealing s. 212.0591, F.S.,
which provides rules of construction with respect to said tax; repealing
s. 212.0592, F.S., which provides exemptions from said tax; repealing
s. 212.0593, F.S., which provides for administration of the exemption
for services sold in this state for use outside this state; repealing
s. 212.0594, F.S., which provides special provisions applicable to the
tax on construction services; repealing s. 212.0595, F.S., which pro-
vides special provisions applicable to tax on advertising; repealing
s. 212.02(22)(f), (g), (h), and (aa), F.S., which include activities related
to construction and real estate within the meaning of "service";
amending s. 212.08, F.S.; conforming an exemption relating to film
rental;
Rep. Gardner moved the adoption of the amendment, which was
adopted without objection.
The Committee on Finance & Taxation offered the following
amendment:
Amendment 3-On page 23, lines 22-30, and on page 24, lines 1-2,
strike all of said lines and renumber subsequent sections; and insert on
page 46, line 6, new Sections 28 and 29:
Section 28. Effective December 31, 1987, and applicable to tax years
beginning on or after January 1, 1988, Section 199.032, Florida
Statutes, is amended to read:
199.032 Levy of annual tax.-An annual tax of 2 1 mills is hereby
imposed on each dollar of the just valuation of all intangible personal
property, except for notes, bonds, and other obligations for the payment
of money which are secured by mortgage, deed of trust, or other lien
upon real property situated in the state. This tax shall be assessed and
collected as provided in this chapter.
Section 29. Section 199.292, Florida Statutes, is amended to read:
199.292 Disposition of intangible personal property taxes.-All
intangible personal property taxes collected pursuant to this chapter

shall be placed in a special fund designated as the "Intangible Tax
Trust Fund." The fund shall be disbursed as follows:
(1) Revenues derived from the annual tax on a leasehold described in
s. 199.023(1)(d) shall be returned to the local school board for the
county in which the property subject to the leasehold is situated.

(2) There is hereby appropriated annually out of the fund the
amount necessary for the effective and efficient administration and
enforcement by the department of the provisions of chapters 192, 193,
194, 195, 196, 197, and 198 and this chapter.
(3) An amount equal to 55 percent of the remaining intangible
personal property taxes collected shall be transferred to the Revenue
Sharing Trust Fund for Counties. An amount equal to 45 percent of the
remaining taxes collected shall be transferred to the General Revenue
Fund of the state.
(4) Notwithstanding the provisions of subsection (3), additional funds
generated as a result of the second mill imposed pursuant to s. 199.032
shall be transferred to the General Revenue Fund of the State.
(renumber subsequent section)
Representative Gardner offered the following substitute amendment:
Substitute Amendment 3-On pages 3-46, strike everything after
the enacting clause and insert:
Section 1. Effective January 1, 1988, paragraph (a) of subsection (1)
and subsection (2) of section 212.059, Florida Statutes, as created by
chapter 87-6, Laws of Florida, and subsection (3) of said section, as
amended by chapter 87-101, Laws of Florida, are amended, and
subsection (6) of said section, as created by chapter 87-101, Laws of
Florida, is hereby repealed, to read:
212.059 Sales and use tax on services.-It is hereby declared to be
the legislative intent to levy an excise tax on the sale of services in this
state as hereinafter provided. It is further declared to be the legislative
intent to levy a complementary excise tax on the use of services in this
state as hereinafter provided.
(1)(a) A tax is hereby imposed on the sale at retail, of any service in
this state, of services as defined in s. 212.02, at the rate of 5 percent of
the sales price of the service. The tax shall be computed on each
taxable sale of a service for the purpose of remitting the amount of tax
due the state, and shall include each and every retail sale of the a
service.
(2) A tax is hereby imposed on the use, ef any service in this state, of
services as defined in s. 212.02, when the sale of the service is at retail
outside this state, at the rate of 5 percent of the cost price of the
service. The use of the a service is in this state for purposes of this part
if the benefit of the service is enjoyed in this state. For purposes of
determining where the benefit of the services is enjoyed, s. 212.0591(9)
shall apply.

(3)(a) Except as provided in paragraph (a), the sales and use tax on
services imposed by this section shall be collected by the dealer as
defined in this part and remitted by him to the state at the time and in
the manner as provided in this part.
(b)1. If the sale of a service is outside this state, any applicable use
tax shall be remitted by the purchaser or user of the service, if the
purchaser or user of the service has nexus for sales and use tax
purposes with this state. However, this paragraph shall not apply to
interstate or international transportation services. Neither does this
paragraph apply if the seller' has ta* nexus in this state and the se'viee

2. Notwithstanding other provisions to the contrary, a dealer shall
collect and remit use tax on the sale of a service outside this state if the
service either directly relates to real property in this state, directly
relates to tangible personal property in this state other than vehicles
or vessels in interstate or foreign commerce, or is represented by
tangible evidence, other than a bill or invoice, personal property
forwarded to a person in this state. However, the seller is not required

to collect the use tax if the service is sold to a person who presents an
exempt purchase permit or an exempt purchase affidavit.

September 30, 1987

15

JOURNAL OF THE HOUSE OF REPRESENTATIVES

Section 2. Effective January 1, 1988, subsections (6), (7), (8), (9), (10),
(11), (12), (13), (14), (15), (16), (17), (18), (19), (20), (21), (22), (23),
(24), (25), (26), (27), (28), (29), (30), (31), (32), (33), (34), (35), (36),
(37), (38), (39), (40) and (41) of section 212.0592, Florida Statutes, as
created by chapter 87-6, Laws of Florida, and amended by chapter
87-101, Laws of Florida, and subsections (42), (43), (44), (45), (46),
(47), (48), (49), (50) and (51) of said section, as created by chapter
87-101, Laws of Florida, are hereby repealed.
Section 3. Effective January 1, 1988, subsections (1), (2), and (3) of
section 212.0593, Florida Statutes, as created by chapter 87-6, Laws of
Florida, and amended by chapter 87-101, Laws of Florida, are amended
to read:
212.0593 Administration of s. 212.0592(1).-
(1) Each multistate business having sales and use tax nexus in this
state under this part shall obtain from the department an exempt
purchase permit prior to claiming an exemption under s. 212.0592(1).
Such permit shall be used when purchasing any service sold in this
state except advertising, regardless of whether the service is used in
this state. Upon purchasing a service from a dealer registered under
this part, presentation by said multistate business of a valid exempt
purchase permit shall absolve the selling dealer from the responsibility
of collecting any sales or use tax which may be due on the service. The
purchaser shall self-accrue any taxes which may be due on the service
and remit them to the department in the manner and under the
requirements applicable to dealers under this part, subject to such
additional reporting requirements as the department may prescribe.
(2) Any business or group of businesses without sales and use tax
nexus in this state under this part, and any individual resident in
another state claiming an exemption under s. 212.0592(1), shall obtain
an exempt purchase permit under subsection (1) and consent to be
subject to the jurisdiction of this state solely for the purpose of
verifying entitlement to the exemption enfereement of the sales tax on
services, or shall execute and present to the selling dealer an exempt
purchase affidavit on a form prescribed by the department. The
affidavit shall include the federal employer identification number of
the business or social security number of the individual, the purchas-
er's location and mailing address, a statement that the business does
not have sales and use tax nexus in this state under this part or that
the individual is not a resident of this state, the name and registration
number of the selling dealer, and a statement of consent by the
purchaser to be subject to the jurisdiction of this state solely for the
purpose of verifying entitlement to the exemption enforcement of the
sales tax eo services. The affidavit shall also contain such other
information as the department may prescribe. Acceptance of a valid
exempt purchase permit or affidavit shall absolve the selling dealer
from the responsibility of collecting any sales tax which may be due on
the service.
(3) Each dealer shall maintain a monthly log showing each
transaction for which sales tax was not collected because of the
presentation of an exempt purchase permit or exempt purchase
affidavit under this section. The log shall identify the purchaser, the
exempt purchase permit number if applicable, the service sold, the
price of the service and such other information as the department may
prescribe. The logs and all affidavits accepted by the dealer shall be
retained by the dealer for 5 years and made available to the
department upon request. Failure to maintain these records or to make
them available to the department shall subject the dealer to a $100
mandatory penalty.
Section 4. Effective January 1, 1988, section 212.0594, Florida
Statutes, as created by chapter 87-101, Laws of Florida, is amended to
read:
212.0594 Construction services; special provisions.-
(1) For purposes of this section:
(a) "Prime contractor" means:

1. A person who enters into a contract to construct, improve, alter, or
repair realty with the person for whose benefit the realty is being
constructed, improved, altered, or repaired, unless the contract specifies
that the person for whose benefit the realty is being modified is

assuming the responsibilities of a prime contractor pursuant to
subparagraph 3., and that person is the final consumer of the realty;
2. A person who enters into a contract to undertake the primary
responsibility for supervising and disbursing payments for the con-
struction, improvement, alteration or repair of realty with the person
for whose benefit the realty is being constructed, improved, altered, or
repaired, in which case, all other persons involved in the construction
who would otherwise qualify as prime contractors under subparagraph
1. shall be deemed subcontractors;
3. A person who undertakes, on a speculative basis or for his own
use, the construction, improvement or alteration of realty; or
4. A person who manufactures factory-built buildings.
(b) "Subcontractor" means a person who enters into a contract to
provide construction services to a prime contractor or to another
subcontractor.
(c) "Construction services" means any activity directly involving the
construction, alteration, improvement or repair of realty.
W4 "Co-nstr tio. support sereiees" means architectural, engineer
ingi drafting, su.r;ying, land planning. landscape design and interior
design services when seh servi es directly relate te the eenstrution,
alteration, improment o repair of realty
(d)(e) "New Construction" means factory-built buildings and any
construction, alteration, improvement or repair of realty for which the
eentraet price or eest price including building materials used, exceeds

(e)(4 "Building materials" means tangible personal property physi-
cally incorporated into the affected realty.
(/9(g) "Contract price" means the total consideration paid pursuant to
a contract for the construction, alteration, improvement or repair of
realty, or in the case of new construction undertaken on a speculative
basis, the total consideration paid pursuant to a contract to purchase
the improved realty. However, the following may be excluded from the
contract price shall not include the:
1. The fair market value of land and any improvements to the land
existing prior to the contract for the construction, alteration, improve-
ment or repair of the realty;- oe the value ef eefstruetien support
seiees prei4ded fby other than employees of the prime entra
2. The fair market value of any improvements to the land to the extent
the construction of the improvements has previously been taxed
pursuant to this section;
3. Payments to subcontractors;
4. Payments for services, other than construction services, taxable
pursuant to s. 212.059 or s. 212.0595;
5. Payments for government fees and taxes specific to the construction
project;
6. Payments for insurance and bonds specific to the construction
project; and
7. Payments made to financial institutions to reduce the permanent
financing costs on the purchase of residential construction.
(g)(h) "Fair market value" means 120 percent of the property's
assessed value for ad valorem tax purposes, as reflected by the most
recent assessment roll for the county prior to the new construction,
unless the prime contractor can demonstrate to the satisfaction of the
department by proof of comparable sales, actual purchase price, or
appraisal, that such assessment understates the value of the property.
(h)(i) "Cost price" means the direct and indirect costs of construction,
including but not limited to, the cost of materials used, labor and
service costs, interest charged, and overhead expenses; however, "cost
price" shall not include any item that may be excluded from the
definition of "contract price." without any deduction whatsoever.

(2) The tax imposed by s. 212.059 shall be applied to the sale of
construction services in the following manner:

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September 30, 1987

JOURNAL OF THE HOUSE OF REPRESENTATIVES

(a) For new construction undertaken pursuant to a contract, or
undertaken on a speculative basis but sld within 6 months of
e.mpletion of the new eenstruetion, the tax shall be imposed upon 50
percent of the contract price.
(b) For new construction undertaken for the prime contractor's own
use, or undertaken eo a speculative basis and not sold within 6 months
of completion the tax shall be based upon 50 percent of the cost price.

(c) For new construction consisting of factory-built buildings, the tax
shall be imposed upon the cost price- less the amount paid for building
materials ineorporated into such buildings.
(d4 For new eonstruetion undertaken for the prime contractor's ewn
use or undertaken on a speculative basis and directly related toe eal
property registered or exempt pursuant to chapter 498 er regulated
under chapter 721, the tax shall be imposed upon 60 percent of the eest
priee-
(e) For eenstruetien etherz than ew onstrueti n the tax shall be
poesed upon the total eentraet priee, less the amount paid by the
"prime contractor for building materials incorporated into the realty.
However- the deduction for building material shall only apply if the
prime eontraeter has previously paid the sales tax en sueh materials,
and the written eentraet eo invoice provided by the prime contreactr to
the person for whom the eeonstruetion was done specifically itemizes
the building materials and the priee paid by the prime contractor fer
sueh materials.

(d)(f} If new construction is undertaken pursuant to a contract that
is not an arm's-length transaction, or if new eenstruetion is undrtak
en eo a speeulative basis and the realty is then sold within 6 months
pursuant to a contraet that is not an arm's length transaetion, the tax
shall be imposed upon 50 percent of the cost price of the new
construction, and not upon the contract price.
(g) For the construction eo repair of roads pursuant te or in
furtheranee of a eentraet with a governmental entity described in
r- 12.08(6)- the tax shall not apply.
(h) For the eenstruetion or repair of property used primarily fo
public worshipA the tax shall net apply
(i) The tax on eenstruetion support services shall be imposed upon
the tetal sales priee for seh services and shall be due and payable in
aeeerdanee with the provisions of s- 212.059(4).
(e)() Prime contractors for new eenstruetion shall be eensidered the
final eensumer of eenstruetion services eeonumed in improving realty.
The owner of the affected real property shall be considered the final
consumer of construction services other than those related to new
eenstruetion. The prime centraetor 0e subeentrater who purchases oe
uses building materials shall be eensidered the final eensumer of the
building materials.

(f) Construction services performed pursuant to or in furtherance of a
contract with a governmental entity described in s. 212.08(6) or an
exempt entity described in s. 212.08(7)(o) shall be exempt from the tax.
(g)(k4 Notwithstanding other provisions of this subsection, no tax
shall be imposed upon construction services o eonstruetion support
services performed by one's own employees if the services are
performed for an employer who is incidentally engaged in improving
real property, such improvements are made in the furtherance of the
employer's primary business, and the employer is not in the business of
providing construction services. In addition, no tax shall be due on
construction services performed by an individual who is engaged in the
construction of his own primary residence.
-14 As an alternative method fe computing the tax imposed ia this
subsection, the prime eeontraetor may eeompute and pay the tax on
eeonstrution services oe new construction, as follows:
1 The tan en eonstruetion services purchased by prime contractors
shall be due ad payable by the prime contractoer at the time
consideration is paid for sueh services-

26 The tax on purchases ef eenstruetion services by prime contractors
shael be based on the total eensideration paid the subeentmacter.

However- if the written proposal, eentract, Or interim er final inveiee of
the subeentraeteor specifically describes, itemizes and states the price
paid by the subeentraetor for the building materials purchased by the
subeentraetor and incorporated into the improvement in fulfillment of
his responsibilities under the subontrt he sueentae tax shall be based ftthe
total eeonsideratin less the priee f said building materials.
3- The tax on the eenstruetion services any prime eontraetor provides
with respect to new eenstruetion for himself eo others shall be based
upon the eest priee t the prime contractor f the services he provides-
However, the eest of building materials purchased by the prime
contractor ad incorporated in the new eenstrucetion, a d amounts
paid te subeentractors upon which a sales tax has been paid shall net
be included in the eest priee. The ta shall be due and payable as
otherwise provided in this part at the time the eentraet for new
eenstruetion is fulfilled eF within 30 days after the eertifieate of
oeeupaney is issued, whichever is sooner. The retail sale ef new
eenstruction for which the prime contractor has paid tax pursuant to
this paragraph shall be exempt from the tax imposed by this section.
4- This alternative method feo eemputing the ta shall apply to
eenstruetion services purchased 0* provided by a prime eentraeter for
eonstreution projects beg n eo or after July 4-, 1988
5- A prime contraetor sha4l make the election to eempute the tax
pursuant to this paragraph on a form prescribed by the depart-ment
Any sueh election shall apply to al construction services purchased O*
provided by the prime contraetor during the term ef the election The
dep-rtment shall promulgate rles regardi-ng the application of the
eleetien to eenstruetion projects in progress at the time the election is
made and eenstruetion projects which ae in progress at the time the
election is terminated. A prime contraetor may net change the method
fef the payment of the tax more than enee during any month period
(3) The tax imposed by s. 212.059 on construction services shall be
due and payable in the following manner:
(a) Prime contractors and subcontractors licensed or registered
pursuant to chapter 489 shall be entitled to obtain a resale permit from
the department to be utilized when purchasing building materials.
However, when building materials are purchased tax exempt by a
person other than a governmental entity described in s. 212.08(6) or an
exempt entity described in s. 212.08(7)(o), and are used in construction
done pursuant to or in furtherance of a contract with such an entity, the
person purchasing the materials shall be deemed the ultimate consumer
of the materials and shall be responsible for payment of a use tax on the
sales price of the materials. The use tax shall be due when the materials
are first used.
(b)(a The Prime contractors eentraetor shall be responsible for
collecting and remitting the tax on construction they perform services
performed by himself aad by his subeentractors.
(c)(b) Subcontractors shall be responsible for collecting and remitting
not be required to eolleet the tax on construction services they perform.
(d)(e) For new construction undertaken pursuant to a contract, or
undertaken on a speculative basis, the tax shall be due when the prime
contractor or subcontractor is paid for the construction he performed.
receives payments under the eontreaet If the eentraet priee is paid in
draws e installments, the amount of ta to be paid with respect to
each suekh draw r installment, before application eof the dealer credit,
shaeH be that proportion ef the tan due o the total contract priee which
the amount of the draw e0 installment bears to the total eontreet prfiee-
(d) For new construction undertaken on a speculative basis, oe for
the prime eontraetoer's ewn ttse partial payment of the tax shall be due
at suck time payment is made by the prime eontraeter to the
subeontraetor based on 50 percent of the amount f suekh payment. Any
tax amounts remaining shall be due 830 days after a certificate of
eeeupaney is issued eor if noe certificate of eeeupaney is required, when
the new construction is first put to its intended use-
(e) For new construction undertaken for the prime contractor's own
use, the tax shall be due when a certificate of occupancy is issued, or if

no certificate of occupancy is required, when the new construction is
first put to its intended use. However, the tax on construction performed

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by a subcontractor shall be due when the subcontractor is paid for the
construction he performed.
() For eenstruetion other than new eonstruetion, the tax shall be due
"when the prime eentraeter receives payment for the eenstruetion
services rendered-.
(f)(g) Taxes due and payable pursuant to this section shall be
remitted in accordance with s. 212.11.
(g)(h) No unit of local government shall issue a certificate of
occupancy for new construction until the prime contractor certifies, on
a form promulgated by the department and submitted to the local
government, that the new construction is substantially complete. Such
forms shall be provided to local governments by the department, and
completed forms shall be returned monthly to the department by the
local governments.
(4) The following provisions of this part shall not apply with regard
to the tax on construction services:
(a) Section 212.02(5), the definition of "cost price."
(b) Seetion 212.02(2441), the definition ef "sales price"
(b)(e) Section 212.059(3), regarding the collection and remittance of
the tax.
(c)(4d Section 212.059(4), regarding the time the tax is due.
(d)(e) Section 212.0591(4), regarding taxation of transactions pre-
viously taxed.
(e)(44 Section 212.0591(6), regarding separate statement of services
and real property.
(f)(g) Section 212.0591(7), regarding separate statement of taxable
and exempt services.
(g)(h Section 212.0592(3), regarding occasional or isolated sales.
(h)(i4 Section 212.0592(4), regarding services sold to partnerships.
(i)9 Section 212.0592(5), regarding services sold between members
of an affiliated group.
Section 5. Effective January 1, 1988, section 212.0598, Florida
Statutes, as created by chapter 87-101, Laws of Florida, is amended to
read:
212.0598 Special provisions; air carriers.-
(1) Notwithstanding other provisions of this part to the contrary, any
air carrier utilizing mileage apportionment for corporate income tax
purposes in this state required by the United States Department of
Transportation to keep reeerds aeeerding to said department's standard
classification of aeeounting may elect, upon the conditions prescribed
in subsection (3), to attribute to this state pursuant to
s. 212.0591(9)(b)4. use or consumption of all services and tangible
personal property it purchases or uses. (4) to be subject to the tax
impo.sed by this part on services d tangible personal pr- perty
aeeording t the provisions of this section
(2) The basis of the tax shall be the ratio of Florida mileageto total
mileage as determined pursuant to part V of chapter l4; The ratio
shall be determined at the eloese of the carrier preceding fiscal year.
The ratio shall e applied each month te the carriers total systemwide
gross purchases of tangible personal pe and series otherwise
taxable in Florida,
(2)(3) It is the legislative intent that air carriers are hereby
determined to be susceptible to a distinct and separate classification
for taxation under the provisions of this part, if the provisions of this
section are met.
(3){44 The election provided for in this section shall not be allowed
unless the purchaser makes a written request, in a manner prescribed
by the Department of Revenue, to be taxed under the provisions of
subsection (1) (2), and such person registers with the Department of
Revenue as a dealer and extends to his vendor at the time of purchase,

if required to do so, a certificate stating that the item or items to be
partially exempted are for the exclusive use designated herein.

Otherwise all purchases of table property and services purchased in
this state shall be subject to taxation

(4)(5) Notwithstanding other provisions of this part to the contrary,
any air carrier eligible for the election provided in subsection (1) which
does not so elect shall be subject to the tax imposed by this part on the
purchase or use of services and tangible personal property purchased
or used in this state, as well as other taxes imposed herein.
Section 6. Paragraph (a) of subsection (19) and subsection (21) of
section 212.02, Florida Statutes, 1986 Supplement, as amended by
chapters 87-6 and 87-101, Laws of Florida, are amended to read:
212.02 Definitions.-The following terms and phrases when used in
this chapter have the meanings ascribed to them in this section, except
where the context clearly indicates a different meaning:
(19)(a) "Retail sale" or a "sale at retail" means a sale to a consumer
or to any person for any purpose other than for resale in the form of
tangible personal property or services, and includes all such transac-
tions that may be made in lieu of retail sales or sales at retail. "Retail
sale" does not include fee-sharing for services described in
s. 475.01(1)(c) 475.011 by persons licensed under chapter 475. A sale of
a service shall be considered a sale for resale only if:
1. The purchaser of the service provides a direct and identifiable
benefit to a single client or customer of the purchaser does nt uase or
eensume the service but aets as a broker or intermediary in procuring
a service for his client or customer;
2. The purchaser of the service buys the service pursuant to a
written contract with the seller or other written documentation which
and sueh contract identifies, by name or other evidence sufficient for
audit purposes, the client or customer for whom the purchaser is
buying the service; and
4. The purchaser of the service separately states the value of the
service purchased at the purchase price in his charge for the service en
its subsequent sale
4- The service, with its value separately stated will be taxed under
this part in a subsequent sale, unless otherwise exempt pursuant to
si 212.0592(4); ad
3.5- The service is purchased pursuant to a service resale permit by a
dealer who is primarily engaged in the business of selling services.
However, the department may authorize the issuance of a service resale
permit to a dealer who is not primarily engaged in the sale of services if
such dealer is otherwise regularly engaged in brokering services for
clients or customers. The department shall provide by rule for the
issuance and periodic renewal every 5 years of such resale permits.
However, a sale, to other than an end user, of telecommunication
services consisting of a right of access for which an access charge, as
defined in s. 203.012(1), is imposed, is a sale for resale.
(21) "Sales price" means the total amount paid for tangible personal
property or services, including any services that are a part of the sale
and any tangible personal property that is part of the service, valued
in money, whether paid in money or otherwise, and includes any
amount for which credit is given to the purchaser by the seller, without
any deduction therefrom on account of the cost of the property sold, the
cost of materials used, labor or service cost, interest charged, losses, or
any other expense whatsoever. "Sales price" also includes the consider-
ation for a transaction which requires labor or material to alter,
remodel, maintain, adjust, or repair tangible personal property.
Trade-ins or discounts allowed and taken at the time of sale shall not
be included within the purview of this subsection. "Sales price" does
not include travel and entertainment expenses, postage, or taxes or other
governmental fees advanced on behalf of a client, if such expenses or
charges are directly reimbursed at cost by the client.
Section 7. Effective January 1, 1988, subsections (22) and (24) of
section 212.02, Florida Statutes, as created by chapter 87-6, Laws of
Florida, are amended to read:

(Substantial rewording of subsections. See s. 212.02(22) and (24),
F.S., for present text.)

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212.02 Definitions.-The following terms and phrases when used in
this chapter have the meanings ascribed to them in this section, except
where the context clearly indicates a different meaning:
(22) The term "service" or "professional services" as used in this part
means the following activities usually provided for consideration:
(a) Landscape and horticultural services as described in SIC Group
Number 078, and animal specialty services as described in SIC Industry
Number 0752, unless the service relates to agricultural products as
defined in s. 618.01(1).
(b) Construction services as described in SIC Major Groups 15, 16
and 17 and as provided in s. 212.0594.
(c) Printing services as described in SIC Group Number 279.
(d) Coating, engraving and allied services as described in SIC Group
Number 347.
(e) Sightseeing bus and limousine and automobile rental with driver
services as described in SIC Industry Number 4119, passenger trans-
portation charter services as described in SIC Group Number 414, and
services of terminal and service facilities for motor vehicle passenger
transportation as described in SIC Group Number 417.
(f) Terminal and joint terminal maintenance facility services for
motor freight transportation as described in SIC Group Number 423.
(g) Air transportation services described in SIC Major Group 45
except international air transportation services. "International air
transportation" shall have the same meaning as used in the Federal
Aviation Act.
(h)l. Unless the service is provided to a nonresident entity or
nonresident person as defined in Rule 3C-15.003, Florida Administra-
tive Code, the following services of a financial nature for which a fee or
charge is specifically imposed: use of safety deposit boxes; use of night
deposit services; issuing cashier's checks; issuing traveler's checks;
issuing money orders; issuing bank drafts; preparation of tax returns;
copies of documents; stop payment services; return check services, unless
due to insufficient funds; service as personal representative of estates of
decedents; credit information and reporting services; overdraft services;
hold mail services; guardianship services; credit card and charge card
membership fees; cash vault services; financial planning services; public
accounting services of a type not customarily performed in connection
with a customer account; or data processing services not otherwise
exempt, except check and draft processing and clearing services
normally provided by institutions defined in SIC Major Groups 60, 61
and 62.
2. The following services of a financial institution are excluded:
a. Any service for which the charge is waived or imputed; or
b. Investment advisory services.
3. For the purposes of this paragraph, the term "financial institution"
means a financial institution as defined in s. 655.005; any subsidiary
thereof; any holding company, other than a diversified savings and loan
holding company as defined in s. 408 of the National Housing Act,
which controls a financial institution; any subsidiary of such holding
company; any Federal Reserve Bank; and any Federal Home Loan
Bank.
(i) Investment advisory services provided by an investment adviser as
defined in s. 517.021(13)(a), except investment advisory services pro-
vided to an investment company registered under the Investment
Company Act of 1940 or to any employee benefit plan subject to the
provision of the Employee Retirement Security Act of 1974, as amended,
or to any person exempt from federal income tax under the Internal
Revenue Code, as amended.
(j) Provision of title insurance as described in SIC Group Number 636
that is in excess of the risk premium rate promulgated pursuant to
s. 627.782.
(k) Real estate agent services as described in SIC Major Group 65
unless, in the sale of property, the property seller affirmatively

demonstrates to the real estate agent responsible for collecting the tax
that at the time of signing the initial listing contract on the real estate

September 30, 1987

SIC Group Number 891.
(w) Accounting, auditing and bookkeeping services described in SIC
Industry Group Number 872, and tax preparation services described in
SIC Industry Group Number 729.

OF REPRESENTATIVES 19

offered for sale the property was assessed as homestead property
pursuant to s. 196.031.
(1) Laundry, cleaning and garment services as described in SIC
Group Number 721, except coin-operated laundries and dry cleaning as
described in SIC Industry Number 7215 and personal laundry services
sold to residents of nursing home facilities, adult congregate living
facilities, and hospices licensed under chapter 400; photographic
services as described in SIC Group Number 722; and shoe repair
services, shoe shine services, and hat cleaning services as described in
SIC Group Number 725.
(m) Massage, steam bath, turkish bath, tanning salon, and tattoo
parlor services described in SIC Industry Number 7299, and physical
fitness facility services described in SIC Industry Number 7991,
regardless of the nature or status of the provider and notwithstanding
any other exemption provided by s. 212.08.
(n) Consumer credit reporting agency services, mercantile reporting
agency and adjustment and collection agency services as described in
SIC Group Number 732.
(o) Mailing, reproduction, commercial art and photography, and
stenographic services described in SIC Industry Group Number 733.

(p) Pest control and maintenance services related to dwellings and
other buildings as described in SIC Group Number 734.
(q) Miscellaneous business services as described in SIC Group
Number 738, except for news syndicate services described in SIC
Industry Number 7383.
(r) Personnel supply services described in SIC Industry Group
Number 736, provided that help supply services provided pursuant to a
contract to supply such services for a term in excess of 4 weeks shall not
include the cost of payroll and related employment benefits of the
employees so provided. If the help service is a non-taxable health service,
it is excluded.
(s) Computer programming, data processing, and other computer
related services described in SIC Industry Group Number 737, unless
such services are performed for a financial institution by a service
corporation of that financial institution, provided:
1. All capital stock of the service corporation may be purchased by
financial institutions having operations in this state.
2. No financial institution owns, or may own, more than 10 percent of
such service corporation's outstanding capital stock.
3. Every eligible financial institution shall own an equal amount of
capital stock or shall, on such uniform basis as the service corporation
shall determine, own an amount of such stock equal to a stated
percentage of its assets or savings capital at the time the stock is
purchased, or an amount of such stock equal to its pro rata share of
accounts serviced.
4. As used in this paragraph, "financial institution" means those
establishments described in SIC Major Group 60 and 61.
(t) Coin-operated amusement devices described in SIC Industry
Number 7993;
(u) Legal services as described in SIC Major Group 81 except for:
1. Legal services rendered by an attorney to a client to the extent that
the right to counsel guaranteed pursuant to either the Sixth Amendment
to the United States Constitution or Article I, Section 16 of the Florida
Constitution is applicable to such legal services; and
2. Legal services, provided to a natural person, which relate to child
support, dissolution of marriage, enforcement of civil rights, bankruptcy
proceedings, or social security claims.
(v) Engineering, architectural and surveying services as described in

JOURNAL OF THE HOUSE OF REPRESENTATIVES

(x) Automotive repair services described in SIC Industry Group
Numbers 753 and 754, except coin-operated car washes and except
emergency road services for which the total consideration is less than
$10.
(y) Miscellaneous repair services as described in SIC Major Group 76,
except excluded are horseshoeing services.
(z) Management and public relations services described in SIC
Industry Group Number 874, and business consulting services de-
scribed in SIC Industry Number 8748.
(aa) Advertising agency services described in SIC Industry Number
7311, and media buying services described in SIC Industry Number
7319.
The term "service" or "professional service" shall exclude all services
provided and paid for pursuant to court order in a bankruptcy
proceeding and services provided in a proceeding to collect benefits
pursuant to the Social Security Act. The term "service" or "professional
service" shall also exclude maintenance assessments or fees paid by an
association member to a homeowners association, condominium owners
association, property owners association, mobile homeowners associa-
tion, or cooperative association.
(24) "SIC" means those classifications contained in the Standard
Industrial Classification Manual, 1987, as published by the Office of
Management and Budget, Executive Office of the President.
Section 8. Paragraph (a) of subsection (1) of section 212.031, Florida
Statutes, 1986 Supplement, as amended by chapters 87-6 and 87-101,
Laws of Florida, is amended to read:
212.031 Lease or rental of or license in real property.-
(1)(a) It is declared to be the legislative intent that every person is
exercising a taxable privilege who engages in the business of renting,
leasing, letting, or granting a license for the use of any real property
unless such property is:
1. Assessed as agricultural property under s. 193.461.
2. Used exclusively as dwelling units.
3. Property subject to tax on parking, docking, or storage spaces
under s. 212.03(6).
4. Recreational property or the common elements of a condominium
when subject to a lease between the developer or owner thereof and the
condominium association in its own right or as agent for the owners of
individual condominium units or the owners of individual condomin-
ium units. However, only the lease payments on such property shall be
exempt from the tax imposed by this chapter, and any other use made
by the owner or the condominium association shall be fully taxable
under this chapter.
5. A public or private street or right-of-way occupied or used by a
utility for utility purposes.
6. A public street or road which is used for transportation purposes.
7. Property used at an airport exclusively for the purpose of aircraft
landing or aircraft taxiing or property used by an airline for the
purpose of loading or unloading passengers or property onto or from
aircraft or for fueling aircraft.
8. Property used at a port authority as defined in s. 315.02(2)
exclusively for the purpose of oceangoing vessels or tugs docking, or
such vessels mooring on property used by a port authority for the
purpose of loading or unloading passengers or cargo onto or from such
a vessel, or property used at a port authority for fueling such vessels.
9 Property used as aa integral part of the performance of qualified
productionn series as defined i e 212.0592(18)(a)..
9.10- Leased, subleased, or rented to a person providing food and
drink concessionaire services within the premises of a movie theater, a
business operated under a permit issued pursuant to chapter 550 or
chapter 551, or any publicly owned arena, sports stadium, convention
hall, exhibition hall, auditorium, or recreational facility. A person

providing retail concessionaire services involving the sale of food and
drink or other tangible personal property within the premises of an

airport shall be subject to tax on the rental of real property used for
that purpose, but shall not be subject to the tax on any license to use
the property. For purposes of this subparagraph, the term "sale" shall
not include the leasing of tangible personal property.
Section 9. Paragraphs (a) and (c) of subsection (3) of section 212.055,
Florida Statutes, as created by chapter 87-239, Laws of Florida, are
amended, and paragraph (j) is added to said subsection, to read:
212.055 Discretionary sales surtaxes; legislative intent; authoriza-
tion and use of proceeds.-It is the legislative intent that any
authorization for imposition of a discretionary sales surtax shall be
published in the Florida Statutes as a subsection of this section,
irrespective of the duration of the levy. Each enactment shall specify
the types of counties authorized to levy; the rate or rates which may be
imposed; the maximum length of time the surtax may be imposed, if
any; the procedure which must be followed to secure voter approval, if
required; the purpose for which the proceeds may be expended; and
such other requirements as the Legislature may provide. Taxable
transactions and administrative procedures shall be as provided in
s. 212.054.
(3) LOCAL GOVERNMENT INFRASTRUCTURE SURTAX.-
(a) The governing authority in each county may levy, for a period of
up to 15 years from the date of levy, a discretionary sales surtax of up
to 20 percent of any tax paid to the state pursuant to this part, except
this section, s. 212.054 and s. 212.0305. Such governing authority may
levy such surtax in an amount equal to 5, 10, 15 or 20 percent of said
state tax. The levy of the surtax shall be pursuant to ordinance enacted
by a majority of the members of the county governing authority and
approved by a majority of the electors of the county voting in a
referendum on the surtax. If the governing bodies of the municipalities
representing a majority of the county's population adopt uniform
resolutions establishing the rate of the surtax and calling for a
referendum on the surtax, the levy of the surtax shall be placed on the
ballot and shall take effect if approved by a majority of the electors of
the county voting in the referendum on the surtax. No referendum
election called pursuant to the provisions of this subsection shall be
held between March 9 and December 31, 1988.
(c) Pursuant to s. 212.054(4), the proceeds of the surtax levied under
this subsection shall be distributed to the county and the municipal-
ities within such county in which the surtax was collected, according
to:
1. An interlocal agreement between the county governing authority
and the governing bodies of the municipalities representing a majority
of the county's municipal eeunty population; or
2. If there is no interlocal agreement, according to the formula
provided in s. 218.62.
(j) Notwithstanding the provisions of s. 212.054(5), the surtax shall
take effect on the first day of a month as fixed by the ordinance adopted
pursuant to paragraph (3)(a); however, the surtax shall not take effect
until at least 60 days following the electors' approval.
Section 10. Effective January 1, 1988, paragraph (b) of subsection (1)
of section 212.06, Florida Statutes, 1986 Supplement, as amended by
chapter 87-6, Laws of Florida, is amended, and paragraph (1) is added
to subsection (2) of said section, to read:
212.06 Sales, storage, use tax; collectible from dealers; "dealer"
defined; dealers to collect from purchasers; legislative intent as to
scope of tax.-
(1)
(b) Except as otherwise provided, any person who manufactures,
produces, compounds, processes, or fabricates in any manner tangible
personal property for his own use shall pay a tax upon the cost of the
product manufactured, produced, compounded, processed, or fabricated
without any deduction therefrom on account of the cost of material
used, labor or service costs, or transportation charges, notwithstanding
the provisions of s. 212.02 defining "cost price." However, the tax
levied under this paragraph shall not be imposed upon any person who

manufactures or produces electrical power or energy, steam energy,
or other energy, when such power or energy is used directly and

September 30, 1987

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exclusively in the operation of machinery or equipment that is used to
manufacture, process, compound, produce, fabricate, or prepare for
shipment tangible personal property for sale or to operate pollution
control equipment, maintenance equipment, or monitoring or control
equipment used in such operations. The manufacturing or production
of electrical power or energy that is used for space heating, lighting,
office equipment, or air conditioning or any other nonmanufacturing,
nonprocessing, noncompounding, nonproducing, nonfabricating, or
nonshipping activity is taxable. Electrical power or energy consumed
or dissipated in the transmission or distribution of electrical power or
energy for resale is also not taxable. Fabrication labor shall not be
taxable when a person is using his own equipment and his own
personnel, for his own account, as a producer, subproducer, or
coproducer of a videotape or motion picture qualified motion picture as
defined imn 212.0592(18)() prepared for showing on screens or
through television, for either theatrical, commercial, advertising, or
educational purposes.
(2)
(1) When the tax imposed in this part relates to real estate
commissions or fees paid to a real estate agent at closing in connection
with the transfer or sale of any interest in real property, "dealer" means
the closing agent who is responsible for recording the documents
relating to the transfer of the real property in the official records of a
county and remitting any documentary stamp tax. The real estate agent
is responsible for preparing and submitting a statement to the closing
agent at closing which discloses the real estate agent's full compensation
and which declares the amount of the compensation upon which the tax
is due at closing. Failure to properly invoice the tax shall result in the
real estate agent being deemed the dealer, and shall absolve the closing
agent of responsibility for collection of the tax.
Section 11. Paragraph (i) is added to subsection (5) of section 212.08,
Florida Statutes, to read:
212.08 Sales, rental, use, consumption, distribution, and storage tax;
specified exemptions.-The sale at retail, the rental, the use, the
consumption, the distribution, and the storage to be used or consumed
in this state of the following are hereby specifically exempt from the
tax imposed by part I of this chapter.
(5) EXEMPTIONS; ACCOUNT OF USE.-
(i) There shall be exempt from the tax imposed by this part all charges
for aircraft modification services, including parts and equipment
furnished or installed in connection therewith, performed under
authority of a supplemental type certificate issued by the Federal
Aviation Administration.
Section 12. Subsections (3) and (4) of section 31 of chapter 87-6, Laws
of Florida, as amended by chapter 87-101, Laws of Florida, and
subsection (5) of said section, as created by chapter 87-101, Laws of
Florida, are hereby repealed.
Section 13. Section 33 of chapter 87-6, Laws of Florida, as amended
by chapter 87-101, Laws of Florida, is amended to read:
Section 33. (1) The Legislature hereby finds that the failure to
promptly implement the provisions of this act would present an
immediate threat to the welfare of the state because revenues needed
for operation of the state would not be collected. Therefore, the
executive director of the Department of Revenue is hereby authorized
to adopt emergency rules pursuant to s. 120.54(9), Florida Statutes, for
purposes of implementing this act. Notwithtanding any other previ-
iefn of seh emergency rules shall remain effective for 6 months
from the 4ate of adoption. All rules heretofore or hereafter adopted
pursuant to s. 120.54(9), Florida Statutes, for purposes of implementing
this act, chapters 87-6 or 87-101, Laws of Florida, shall remain effective
through June 30, 1988, unless earlier invalidated judicially or pursuant
to s. 120.56, Florida Statutes, on grounds that they, or any of them,
constitute an invalid exercise of delegated legislative authority; however,
no such rule shall be deemed invalid in any form for any claimed lack of
an emergency.
(2) Other rules of the Department of Revenue related to and in

furtherance of the orderly implementation of chapter 87-6 or chapter
87-101, Laws of Florida, and this act shall not be subject to a

s. 120.54(4), Florida Statutes, rule challenge or a s. 120.54(17), Florida
Statutes, drawout proceeding, but, once adopted, shall be subject to a
s. 120.56, Florida Statutes, invalidity challenge. Such rules shall be
adopted by the Governor and Cabinet and shall become effective upon
filing with the Department of State, notwithstanding the provisions of
s. 120.54(13), Florida Statutes.
Section 14. Section 36 of chapter 87-6, Laws of Florida, as amended
by chapter 87-101, Laws of Florida, is amended to read:
Section 36. Any penalties provided for pursuant to s. 212.12(2),
Florida Statutes, shall be waived by the executive director of the
Department of Revenue for returns due for the tax on services newly
imposed by this act. If the executive director determines that the
interest owed pursuant to s. 212.12(3), Florida Statutes, will cause an
undue hardship on the taxpayer, he may also waive the interest
payment. The waiver for penalties and interest shall apply with
respect to returns for taxes due and payable for the period between
July 1, 1987, and December 31, 1987 September 30 -1987.
Section 15. Section 47 of chapter 87-6, Laws of Florida, as amended
by chapter 87-101, Laws of Florida, is hereby repealed.
Section 16. Section 28 of chapter 87-101, Laws of Florida, is amended
to read:
Section 28. There is hereby appropriated from the General Revenue
Fund the sum of $364,757 to the Division of Administrative Hearings
of the Department of Administration, and six positions are hereby
authorized, for purposes of implementing the provisions of chapter
87-6, Laws of Florida, and this act.
Section 17. Effective November 1, 1987, paragraph (a) of subsection
(2) of section 212.04, Florida Statutes, as amended by chapters 87-6
and 87-101, Laws of Florida, is amended to read:
212.04 Admissions tax; rate, procedure, enforcement.-
(2)(a)1. No tax shall be levied on admissions to athletic or other
events sponsored by elementary schools, junior high schools, middle
schools, high schools, community colleges, public or private colleges
and universities, deaf and blind schools, facilities of the youth services
programs of the Department of Health and Rehabilitative Services,
and state correctional institutions when only student, faculty, or
inmate talent is utilized. However, this exemption shall not apply to
admission to athletic events sponsored by an institution within the
State University System, and the proceeds of the tax collected on such
admissions shall be retained and utilized by each institution to support
women's athletics as provided in s. 240.533(4)(c).
2. No tax shall be levied on dues, membership fees and admission
charges imposed by not-for-profit religious sponsoring organizations or
community or recreational facilities. To receive this exemption, the
sponsoring organization or facility must qualify as a not-for-profit
entity under the provisions of s. 501(c)(3) of the United States Internal
Revenue Code of 1954, as amended.
3. No tax shall be levied on an admission paid by a student, or on his
behalf, to any required place of sport or recreation if the student's
participation in the sport or recreational activity is required as a part
of a program or activity sponsored by, and under the jurisdiction of, the
student's educational institution, provided his attendance is as a
participant and not as a spectator.
4. No tax shall be levied on admissions to the National Football
League championship game.
5. No tax shall be levied on admissions to athletic or other events
sponsored by governmental entities.
Section 18. The Department of Revenue is hereby directed to
undertake a review of its records in an effort to identify new dealers
registered to collect the tax on services who will no longer be required to
collect taxes pursuant to chapter 212, Florida Statutes, as a result of this
act. To the extent that the information provided to the department by a
dealer is sufficient to allow the department to identify such a dealer, the
department shall notify the dealer that he is no longer required to collect
the tax, and the department shall refund the dealer's $5.00 registration

fee pursuant to s. 21526. Notwithstanding the provisions of s. 21526,
no application for refund shall be required if the department, based on

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21

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its records, can identify a dealer as a person no longer required to collect
tax. Any other dealer who registered to collect the tax on services, and
who is no longer required to collect the tax, shall be entitled to a refund
of the $5.00 registration fee. Such refunds shall be made pursuant to
s. 21526.
Section 19. (1) On March 8, 1988, concurrent with the presidential
preference primary election, there shall be held in all of the counties of
the state a straw ballot to elicit the views of the public on a matter of
vital interest to the State of Florida.
(2) The following question shall be placed upon the straw ballot on
March 8:
SALES TAX QUESTION
Do you wish to repeal the revised sales tax on services and the increase
in the documentary stamp tax, and replace these taxes with an increase
in the general sales tax from 5 percent to 6 percent on goods,
admissions, and rentals taxed prior to July 1, 1987?
Section 20. Except as otherwise provided herein, this act shall take
effect October 1, 1987.
Rep. Gardner moved the adoption of the substitute amendment,
which was adopted. The vote was:
Yeas-67

Pair Vote
On motion by Rep. Meffert, without objection, the rules were waived
allowing him to withdraw his "Yea" vote from the roll call, and he
paired with Rep. McEwan, who was not present at the time of the vote.
If Rep. McEwan had been present, he would have voted "Nay" and Rep.
Meffert would have voted "Yea". The roll call vote was adjusted
accordingly.
Votes after roll call:
Nays-Sanderson
Nays to Yeas-Bronson, Kelly
Representative Gardner offered the following title amendment:
Amendment 4-On pages 1-3, strike the entire title and insert: A
bill to be entitled An act relating to taxation; amending s. 212.059,
F.S., and repealing subsection (6) thereof; revising provisions which

impose the tax on sales, use and other transactions on the sale of
services; revising provisions relating to sale outside this state;
removing provisions that require applicants for specified permits to
attest that applicable use taxes have been paid; repealing
s. 212.0592(6)-(51), F.S., which provide exemptions from the tax on
services; amending s. 212.0593, F.S., relating to administration of the
exemption for services sold in this state for use outside this state;
revising provisions relating to use of exempt purchase permits and
affidavits; amending s. 212.0594, F.S.; revising special provisions
relating to construction; amending s. 212.0598, F.S.; revising special
provisions relating to air carriers; amending s. 212.02, F.S.; revising
the definitions of "retail sale," "sales price," "service," and "SIC";
amending s. 212.031, F.S.; removing an exemption for lease or rental
of property used for qualified production services; amending s. 212.055,
F.S.; revising provisions relating to the local government infrastruc-
ture surtax; amending s. 212.06, F.S.; revising an exemption for
fabrication labor associated with videotapes or motion pictures;
defining "dealer" with respect to certain real estate commissions;
amending s. 212.08, F.S.; providing an exemption for aircraft modifica-
tion services; repealing s. 31(3), (4) and (5) of chapter 87-6, Laws of
Florida, relating to an exemption for certain improvements to real
property; removing provisions relating to a required application, a
time limitation, and a report to the Legislature by the Department of
Revenue; amending s. 33 of chapter 87-6, Laws of Florida; revising
provisions relating to emergency rules; amending s. 36 of chapter 87-6,
Laws of Florida; revising provisions relating to waiver of penalties;
repealing s. 47 of chapter 87-6, Laws of Florida, relating to a study of
service transactions by the Department of Revenue; amending s. 28 of
chapter 87-101, Laws of Florida; authorizing certain positions for the
Division of Administrative Hearings; amending s. 212.04, F.S.; creat-
ing an exemption for dues and admission charges imposed by nonprofit
community or recreational facilities; requiring the Department of
Revenue to notify certain registered dealers of the repeal of the tax on
certain services; requiring the department to refund dealer registra-
tion fees for certain dealers no longer required to collect tax; providing
for a straw ballot; providing effective dates.
Rep. Gardner moved the adoption of the amendment, which was
adopted without objection.
Without objection, five amendments by the Committee on Finance &
Taxation and ten amendments by the Committee on Appropriations
were abandoned since they were no longer applicable.
Representative Patchett offered the following amendment:
Amendment 5-Strike everything after the enacting clause and
insert: Section 1. Sections 212.059, 212.0591, and 212.0595, Florida
Statutes, as created by chapter 87-6, Laws of Florida, and amended by
chapters 87-72 and 87-101, Laws of Florida, are hereby repealed.
Section 2. Sections 212.0592 and 212.0593, Florida Statutes, as
created by chapter 87-6, Laws of Florida, and amended by chapter
87-101, Laws of Florida, are hereby repealed.
Section 3. Section 212.0594, Florida Statutes, as created by chapter
87-101, Laws of Florida, is hereby repealed.
Section 4. Section 212.0598, Florida Statutes, as created by chapter
87-101, Laws of Florida, is amended to read:
212.0598 Special provisions; air carriers.-
(1) Notwithstanding other provisions of this part to the contrary, any
air carrier required by the United States Department of Transporta-
tion to keep records according to said department's standard classifi-
cation of accounting may elect, upon the conditions prescribed in
subsection (4), to be subject to the tax imposed by this part on services
and tangible personal property according to the provisions of this
section.
(2) The basis of the tax shall be the ratio of Florida mileage to total
mileage as determined pursuant to part IV of chapter 214. The ratio
shall be determined at the close of the carrier's preceding fiscal year.
The ratio shall be applied each month to the carrier's total systemwide

(3) It is the legislative intent that air carriers are hereby determined
to be susceptible to a distinct and separate classification for taxation
under the provisions of this part, if the provisions of this section are
met.
(4) The election provided for in this section shall not be allowed
unless the purchaser makes a written request, in a manner prescribed
by the Department of Revenue, to be taxed under the provisions of
subsection (2), and such person registers with the Department of
Revenue as a dealer and extends to his vendor at the time of purchase,
if required to do so, a certificate stating that the item or items to be
partially exempted are for the exclusive use designated herein.
Otherwise, all purchases of taxable property and services purchased in
this state shall be subject to taxation.
(5) Notwithstanding other provisions of this part to the contrary, any
air carrier eligible for the election provided in subsection (1) which
does not so elect shall be subject to the tax imposed by this part on the
purchase or use of services and tangible personal property purchased
or used in this state, as well as other taxes imposed herein.
Section 5. Section 212.02, Florida Statutes, 1986 Supplement, as
amended by chapters 87-6, 87-101, and 87-402, Laws of Florida, is
amended to read:
212.02 Definitions.-The following terms and phrases when used in
this chapter have the meanings ascribed to them in this section, except
where the context clearly indicates a different meaning:
(1) The term "admissions" means and includes the net sum of money
after deduction of any federal taxes for admitting a person or vehicle or
persons to any place of amusement, sport, or recreation or for the
privilege of entering or staying in any place of amusement, sport, or
recreation, including, but not limited to, theaters, outdoor theaters,
shows, exhibitions, games, races, or any place where charge is made by
way of sale of tickets, gate charges, seat charges, box charges, season
pass charges, cover charges, greens fees, participation fees, entrance
fees, or other fees or receipts of anything of value measured on an
admission or entrance or length of stay or seat box accommodations in
any place where there is any exhibition, amusement, sport, or
recreation, and all dues paid to private clubs providing recreational
facilities, including but not limited to golf, tennis, swimming, yacht-
ing, and boating facilities.
() "Affiiated group" means: an affiliated group of ee ratings, as
defined in -1504(a) of the Internal Revenue Code whose members are
includable under s 15T04(b) (e,, or (4) ofthe Interl Revenue Cede,
and are eligible to file a eenslidated tax return for Federal eerporate
ineomte an pur-psesr or mutual insurance eeompanies whieh are
members of ene insurance holding company system subject to
s 628.801; however, &. 1504(b)(24 shall t apply to this definition
However the taxpayer may eleet, pursuant to rules of the department
governing the procedure for making and amending sueh eeetion, to
define its affiliated group in a manner whieh exeludes any member
who has no tax nexus in this state and any member whose business
activities are unrelated to the business activities of other members of
the group- .Hewever- in no event shall a parent eerporation of an
included member h e excluded from the affiliated group
(2)(3) "Business" means any activity engaged in by any person, or
caused to be engaged in by him, with the object of private or public
gain, benefit, or advantage, either direct or indirect. Except for the
sales of any aircraft, boat, mobile home, or motor vehicle, the term
"business" shall not be construed in this chapter to include occasional
or isolated sales or transactions involving tangible personal property
or services by a person who does not hold himself out as engaged in
business, but includes other charges for the sale or rental of tangible
personal property, sales of services taxable under this part sales of or
charges of admission, communication services, all rentals and leases of
living quarters, other than low-rent housing operated under chapter
421, sleeping or housekeeping accommodations in hotels, apartment
houses, roominghouses, tourist or trailer camps, and all rentals of or
licenses in real property, other than low-rent housing operated under
chapter 421, all leases or rentals of or licenses in parking lots or

garages for motor vehicles, docking or storage spaces for boats in boat
docks or marinas as defined in this chapter and made subject to a tax

imposed by this chapter. Any tax on such sales, charges, rentals,
admissions, or other transactions made subject to the tax imposed by
this chapter shall be collected by the state, county, municipality, any
political subdivision, agency, bureau, or department, or other state or
local governmental instrumentality in the same manner as other
dealers, unless specifically exempted by this chapter.
(3)(44 The terms "cigarettes," "tobacco," or "tobacco products"
referred to in this chapter include all such products as are defined or
may be hereafter defined by the laws of the state.
(4)(5- "Cost price" means the actual cost of articles of tangible
personal property or services without any deductions therefrom on
account of the cost of materials used, labor or service costs, transporta-
tion charges, or any expenses whatsoever.
(64 "Costs of performance" means direct eests determined in a
manner eonsistent with general acpted accounting pr iniples a
in aeeordanee with accepted conditions or praetiees in the type of trade
or business in which the service provider engages.
(5)7-) The term "department" means the Department of Revenue.
(8) "Employee" means any person who is net an independent
eontraetor and whose wages er remuneration are subjt to tax unde
the Federal Insuranee Contributions Aet er under the Federal
Unemployment Tam Aet, er whose wages er remuneration are subject
to withholding fr federal ineeome ta purposes.
(94) "Employer" means any person who must pay taxes on wages
under the Federal Insuranee Contributions Aet or under the Federal
Unemployment Tax Aet or who must withhold taxes from wages for
federal income tax purposes.
(6)4(0 "Enterprise zone" means an area of the state authorized to be
an enterprise zone pursuant to s. 290.0055 and approved by the
secretary of the Department of Community Affairs pursuant to
s. 290.0065. This subsection shall expire and be void on December 31,
1994.
(7)(14 "Factory-built building" means a structure manufactured in a
manufacturing facility for installation or erection as a finished
building; "factory-built building" includes, but is not limited to,
residential, commercial, institutional, storage, and industrial struc-
tures.
(8)42) "In this state" or "in the state" means within the state
boundaries of Florida as defined in s. 1, Art. II of the Constitution of
the State of Florida and includes all territory within these limits
owned by or ceded to the United States.
(9)434 The term "intoxicating beverages" or "alcoholic beverages"
referred to in this chapter includes all such beverages as are so defined
or may be hereafter defined by the laws of the state.
(10)14) "Lease," "let," or "rental" means leasing or renting of living
quarters or sleeping or housekeeping accommodations in hotels,
apartment houses, roominghouses, tourist or trailer camps and real
property, the same being defined as follows:
(a) Every building or other structure kept, used, maintained, or
advertised as, or held out to the public to be, a place where sleeping
accommodations are supplied for pay to transient or permanent guests
or tenants, in which 10 or more rooms are furnished for the
accommodation of such guests, and having one or more dining rooms or
cafes where meals or lunches are served to such transient or
permanent guests, such sleeping accommodations and dining rooms or
cafes being conducted in the same building or buildings in connection
therewith, shall, for the purpose of this chapter, be deemed a hotel.
(b) Any building, or part thereof, where separate accommodations for
two or more families living independently of each other are supplied to
transient or permanent guests or tenants shall for the purpose of this
chapter be deemed an apartment house.
(c) Every house, boat, vehicle, motor court, trailer court, or other
structure or any place or location kept, used, maintained, or advertised
as, or held out to the public to be, a place where living quarters or

sleeping or housekeeping accommodations are supplied for pay to
transient or permanent guests or tenants, whether in one or adjoining

September 30, 1987

23

24 JOURNAL OF THE HOUSE

buildings, shall for the purpose of this chapter be deemed a rooming-
house.
(d) In all hotels, apartment houses, and roominghouses within the
meaning of this chapter, the parlor, dining room, sleeping porches,
kitchen, office, and sample rooms shall be construed to mean "rooms."
(e) A "tourist camp" is a place where two or more tents, tent houses,
or camp cottages are located and offered by a person or municipality
for sleeping or eating accommodations, most generally to the transient
public for either a direct money consideration or an indirect benefit to
the lessor or owner in connection with a related business.
(f) A "trailer camp," "mobile home park," or "recreational vehicle
park" is a place where space is offered, with or without service
facilities, by any persons or municipality to the public for the parking
and accommodation of two or more automobile trailers, mobile homes,
or recreational vehicles which are used for lodging, for either a direct
money consideration or an indirect benefit to the lessor or owner in
connection with a related business, such space being hereby defined as
living quarters, and the rental price thereof shall include all service
charges paid to the lessor.
(g) "Lease," "let," or "rental" also means the leasing or rental of
tangible personal property and the possession or use thereof by the
lessee or rentee for a consideration, without transfer of the title of such
property, except as expressly provided to the contrary herein. The term
"lease," "let," "rental" or "service" does not mean hourly, daily, or
mileage charges, to the extent that such charges are subject to the
jurisdiction of the United States Interstate Commerce Commission,
when such charges are paid by reason of the presence of railroad cars
owned by another on the tracks of the taxpayer- or charges made
pursuant to ear service agreements.
(h) "Real property" means land, improvements thereto, and fixtures,
and is synonymous with "realty" and "real estate."
(i) "License," as used in this chapter with reference to the use of real
property, means the granting of a privilege to use or occupy a building
or a parcel of real property for any purpose.
(11)454 "Motor fuel" means and includes what is commonly known
and sold as gasoline and fuels containing a mixture of gasoline and
other products.
(12)(146 "Nurseryman" or "grower" means any person engaged in the
production of nursery stock or horticultural plants.
(13)1-7) "Person" includes any individual, firm, copartnership, joint
adventure, association, corporation, estate, trust, business trust,
receiver, syndicate, or other group or combination acting as a unit and
includes any political subdivision, municipality, state agency, bureau,
or department and the plural as well as the singular number.
(14)184 "Retailer" means and includes every person engaged in the
business of making sales at retail, or for distribution, or use, or
consumption, or storage to be used or consumed in this state.
(15)(-9)(a) "Retail sale" or a "sale at retail" means a sale to a
consumer or to any person for any purpose other than for resale in the
form of tangible personal property eor services, and includes all such
transactions that may be made in lieu of retail sales or sales at retail.
"Retail sale" des noet include fee sharing for services described in
si 475.011 by persons licensed under chapter 4-5 A sale of a service
shall be considered a sale for resale enly if.
4. The purchaser of the service does not use or consume the service
but aets as a broker or intermediary in procuring a service for his
client or enstomert
%. The purchaser of the service buys the service pursuant to a
written contract with the seller and sueh centraet identifies the client
or customer for whom the purchaser is buying the service;
7 The purchaser of the service separately states the value of the
se.viee pureased at the purchase priee in his charge for the service eo

its subsequent sale;
4 The service with its value separately stated, will be taxed under
this part in a subsequent ale unless otherwise eempt pursuant to
sr 212.052(1); an

E

SOF REPRESENTATIVES September 30, 1987

T. The service is purchased pursuant to a service resale permit by a
dealer who is primarily engaged in the business of selling services. The
department shall provide by rule for the issuance and periodic renewal
every years of sueh resale permits
However- a sale, to other than an end user, of telecommunication
services ensisetigng of a right of aeeess for whieh an aeeess charge, as
defined in s . 20-C012(4, i imposed+ is a sale for resale.
(b) The terms "retail sales," "sales at retail," "use," "storage," and
"consumption" include the sale, use, storage, or consumption of all
tangible advertising materials imported or caused to be imported into
this state. Tangible advertising material includes displays, display
containers, brochures, catalogs, pricelists, point-of-sale advertising,
and technical manuals or any tangible personal property which does
not accompany the product to the ultimate consumer.
(c) "Retail sales," "sale at retail," "use," "storage," and "consump-
tion" do not include materials, containers, labels, sacks, or bags
intended to be used one time only for packaging tangible personal
property for sale or for packagig in t-he process of providing a service
taxable under this part and do not include the sale, use, storage, or
consumption of industrial materials, including chemicals and fuels
except as provided herein, for future processing, manufacture, or
conversion into articles of tangible personal property for resale when
such industrial materials, including chemicals and fuels except as
provided herein, become a component or ingredient of the finished
product. However, said terms include the sale, use, storage, or
consumption of tangible personal property, including machinery and
equipment or parts thereof, purchased electricity, and fuels used to
power machinery, when said items are used and dissipated in
fabricating, converting, or processing tangible personal property for
sale, even though they may become ingredients or components of the
tangible personal property for sale through accident, wear, tear,
erosion, corrosion, or similar means.
(d) "Gross sales" mean the sum total of all sales of tangible personal
property or services as defined herein, without any deduction whatso-
ever of any kind or character, except as provided in this chapter.
(e) The term "retail sale" includes a mail order sale, as defined in
s. 212.0596(1).
(16)(20) "Sale" means and includes:
(a) Any transfer of title or possession, or both, exchange, barter,
license, lease, or rental, conditional or otherwise, in any manner or by
any means whatsoever, of tangible personal property for a considera-
tion.
(b) The rental of living quarters or sleeping or housekeeping
accommodations in hotels, apartment houses or roominghouses, or
tourist or trailer camps, as hereinafter defined in this chapter.
(c) The producing, fabricating, processing, printing, or imprinting of
tangible personal property for a consideration for consumers who
furnish either directly or indirectly the materials used in the
producing, fabricating, processing, printing, or imprinting.
(d) The furnishing, preparing, or serving for a consideration of any
tangible personal property for consumption on or off the premises of
the person furnishing, preparing, or serving such tangible personal
property which includes the sale of meals or prepared food by an
employer to his employees.
(e) A transaction whereby the possession of property is transferred
but the seller retains title as security for the payment of the price.
(f) Any transfer, provision, or rendering ef services for a considera-

(17)(241 "Sales price" means the total amount paid for tangible
personal property or services, including any services that are a part of
the sale and any tangible personal property that is part of the service,
valued in money, whether paid in money or otherwise, and includes

any amount for which credit is given to the purchaser by the seller,
without any deduction therefrom on account of the cost of the property
sold, the cost of materials used, labor or service cost, interest charged,
losses, or any other expense whatsoever. "Sales price" also includes the
consideration for a transaction which requires both labor and or

JOURNAL OF THE HOUSE OF REPRESENTATIVES

material to alter, remodel, maintain, adjust, or repair tangible
personal property. Trade-ins or discounts allowed and taken at the
time of sale shall not be included within the purview of this subsection.
(22) The term "service" er "services" as sed in this part means these
aetii4tie usually previded- for eensideratien by the follewing estab-
lishments listed in the SIG Manualk
(a) Agricultural Servies ajor Group Number o7-)
(b) Forestry Serviees (Majo Group Number 085).
(e) Metal Mining Ser ies (GropNumber 108)
d) Oil and Gas Field Services (Gup Number 18)
(e) Nonmetallie (Nonfuel) Mineral Serviees (Group Number 148).
(f) Building enstruetion General Contraters and Operative Build-
ers (Majer Group Number 114
(g) Construetion other than Building Construction General eCntrac
ters (Majer Group Number 4
(h) Genstruetion Speeial Trade Centractrs (Major Group Number
174.
(4) Printing, Publishing, and Allied Serviees (Majer Group Number

j) GCating, Engraving, and Allied Serviees (Group Number 847).
(k) Railrad Transportation (Major Group Number 40)7
) LeeTal and Suburblan Transit and Interurban Higlhway Passenger
Transportation (Majer Greoup Number 41-)
(m) Motor Freight Transportation and Warehousing (Major Group
Number 42)-
(a) U.S. Postal Service (Major Group Number 43)-
(e) Water Transpertation (Major Group Number 44)-
(p) Transportation by Air (Majer Group Number 45)-
(q4 Pipelines, except Natural Gas (Majer Greep Number 46)N
(r) Transpertation Servies (Majer Group Number 47)4
(s) Communications (Major Group Number 48)7
4t) Electrie Gtas and Sanitary Seravies (Major Group Number, 49)-
(tu Feed Brekers (Industry Number 5141-)
(v) Banking (Major Group Number 60)
(w) Credit Agencies other than Banks (Major Group Number 614
(x) Security and Gemmedity Brekers, Dealers, Exchanges, and
Services (Major Group Number 62)-
(y) Insurance (Major Group Number 63)-

(Majer Greup Number 66)7
(ze) Business Sernices (Majeke ar Group Number 73)

(Major Group Number 84)-
(ee) Membership Organizations (Major Group Number 86)-
(p) Miseellaneeous Services (Major Group Number 8Q-
(qq Legislativee, Judieial, Administrative and Regulatory Aetivitties
of Federal, State, Lt al and International Go ernements (Major Group
Numbers 92, i9- 94- 95, 96, and 97
In addition, the terms shall include the services of any i..ndepen.dent
broker ef tangible personal property.
(18)(23) "Special fuel" means any liquid product, gas product, or
combination thereof used in an internal combustion engine or motor to
propel any form of vehicle, machine, or mechanical contrivance. This
term includes, but is not limited to, all forms of fuel commonly or
commercially known or sold as diesel fuel or kerosene. However, the
term "special fuel" does not include butane gas, propane gas, or any
other form of liquefied petroleum gas or compressed natural gas.
(24) "SIC" means these classifications contained in the Standard
Industrial Glassificatien Manual, 1972, as published by the Office of
Management and Budget, Executive Office of the Presidents, and as
amended in the 1977 Supplement.
(19)(25) "Storage" means and includes any keeping or retention in
this state of tangible personal property for use or consumption in this
state or for any purpose other than sale at retail in the regular course
of business.
(20)26) "Tangible personal property" means and includes personal
property which may be seen, weighed, measured, or touched or is in
any manner perceptible to the senses, including electric power or
energy, boats, motor vehicles and mobile homes as defined in
s. 320.01(1) and (2), aircraft as defined in s. 330.27, and all other types
of vehicles. The term "tangible personal property" does not include
stocks, bonds, notes, insurance, or other obligations or securities;
intangibles as defined by the intangible tax law of the state;
pari-mutuel tickets sold or issued under the racing laws of the state eor
factry buit buildings during construetin Or thereafter.
(21)(27) "Use" means and includes the exercise of any right or power
over tangible personal property incident to the ownership thereof, or
interest therein, except that it does not include the sale at retail of that
property in the regular course of business. "Use" alse means the
consumption or enjoyment ef the benefit of services. --
(22)28) The term "use tax" referred to in this chapter includes the
use, the consumption, the distribution, and the storage as herein
defined ef tangible personal property r services.
Section 6. Paragraph (a) of subsection (1) of section 212.031, Florida
Statutes, 1986 Supplement, as amended by chapters 87-6 and 87-101,
Laws of Florida, is amended to read:
212.031 Lease or rental of or license in real property.-
(1)(a) It is declared to be the legislative intent that every person is
exercising a taxable privilege who engages in the business of renting,
leasing, letting, or granting a license for the use of any real property
unless such property is:
1. Assessed as agricultural property under s. 193.461.
2. Used exclusively as dwelling units.
3. Property subject to tax on parking, docking, or storage spaces
under s. 212.03(6).
4. Recreational property or the common elements of a condominium
when subject to a lease between the developer or owner thereof and the
condominium association in its own right or as agent for the owners of
individual condominium units or the owners of individual condomin-
ium units. However, only the lease payments on such property shall be
exempt from the tax imposed by this chapter, and any other use made

by the owner or the condominium association shall be fully taxable
under this chapter.

September 30, 1987

25

JOURNAL OF THE HOUSE OF REPRESENTATIVES

5. A public or private street or right-of-way occupied or used by a
utility for utility purposes.
6. A public street or road which is used for transportation purposes.
7. Property used at an airport exclusively for the purpose of aircraft
landing or aircraft taxiing or property used by an airline for the
purpose of loading or unloading passengers or property onto or from
aircraft or for fueling aircraft.
8. Property used at a port authority as defined in s. 315.02(2)
exclusively for the purpose of oceangoing vessels or tugs docking, or
such vessels mooring on property used by a port authority for the
purpose of loading or unloading passengers or cargo onto or from such
a vessel, or property used at a port authority for fueling such vessels.
9. Property used as an integral part of the performance of quaifid
production setic as defined in 212.0592(18)(a. .
9.410 Leased, subleased, or rented by a movie theater owner or
operator to a person providing food and drink concessionaire services
within the premises of such theater. Leased, subleased, or rented to a
person providing feed and drink concessionaire services within the
premises of a movie theaters a business operated under a permit ifette
pursuant to chapter 650 or chapter 546K or any publicly ewed arena
sports stadium-, convention hallUy exhibition hall auditorium-, er
reerational facliy. A person providing retail eneessionaire series
involving the sale of feed and drink or ether tangible personal property
within the premises ofan airport shall be subject to tax on the rental of
real property used for that purpose but shaH net be subject to the tax
on any license to use the property. For purposes of this subparagraph,
"the term "sale" shall net include the leasing of tangible personal
property.
Section 7. Paragraph (a) of subsection (3) of section 212.054, Florida
Statutes, 1986 Supplement, as amended by chapter 87-6, Laws of
Florida, is amended to read:
212.054 Discretionary sales surtax; limitations, administration, and
collection.-
(3) For the purpose of this section, a transaction shall be deemed to
have occurred in a county imposing the surtax when:
(a) The dealer is located in the county and the sale includes tangible
personal property or services, except as otherwise provided herein;
Section 8. Paragraph (b) of subsection (1), paragraphs (g) and (k) of
subsection (2), and subsections (4) and (7) of section 212.06, Florida
Statutes, 1986 Supplement, as amended by chapters 87-6 and 87-99,
Laws of Florida, are amended to read:
212.06 Sales, storage, use tax; collectible from dealers; "dealer"
defined; dealers to collect from purchasers; legislative intent as to
scope of tax.-
(1)
(b) Except as otherwise provided, any person who manufactures,
produces, compounds, processes, or fabricates in any manner tangible
personal property for his own use shall pay a tax upon the cost of the
product manufactured, produced, compounded, processed, or fabricated
without any deduction therefrom on account of the cost of material
used, labor or service costs, or transportation charges, notwithstanding
the provisions of s. 212.02 defining "cost price." However, the tax
levied under this paragraph shall not be imposed upon any person who
manufactures or produces electrical power or energy, steam energy, or
other energy, when such power or energy is used directly and
exclusively in the operation of machinery or equipment that is used to
manufacture, process, compound, produce, fabricate, or prepare for
shipment tangible personal property for sale or to operate pollution
control equipment, maintenance equipment, or monitoring or control
equipment used in such operations. The manufacturing or production
of electrical power or energy that is used for space heating, lighting,
office equipment, or air conditioning or any other nonmanufacturing,
nonprocessing, noncompounding, nonproducing, nonfabricating, or
nonshipping activity is taxable. Electrical power or energy consumed
or dissipated in the transmission or distribution of electrical power or
energy for resale is also not taxable. Fabrication labor shall not be
taxable when a person is using his own equipment and his own

personnel, for his own account, as a producer, subproducer, or co-
producer of video tapes or motion pictures a qualified motion picture

as defined in s: 212.0592(18)(b) prepared for showing on screens or
through television, for either theatrical, commercial, advertising, or
educational purposes. Persons who manufacture factory-built buildings
for their own use in the performance of contracts for the construction or
improvement of real property shall pay a tax only upon the persons' cost
price of items used in the manufacture of such buildings.
(2)
(g) "Dealer" also means and includes every person who solicits
business either by direct representatives, indirect representatives, or
manufacturers' agents or by distribution of catalogs or other advertis-
ing matter or by any other means whatsoever and by reason thereof
receives orders for tangible personal property or services from
consumers for use, consumption, distribution, and storage for use or
consumption in the state; and such dealer shall collect the tax imposed
by this chapter from the purchaser, and no action either in law or in
equity on a sale or transaction as provided by the terms of this chapter
may be had in this state by any such dealer unless it is affirmatively
shown that the provisions of this chapter have been fully complied
with.
(k) "Dealerr" alse means any person who sells provides, or performs a
service taxable under this part. "Dealer" alse means any person who
purchases, uses er eensumes a service taEable under this part who
cannot prove that the tax levied by this part has been pai to the seller
of the taxable service.
(4) On all tangible personal property imported or caused to be
imported from other states, territories, the District of Columbia, or any
foreign country, and used by him, and on all services purchased in
ether states, territories, the Distriet of oGelumbi, or ay foreign
eeuntry, and used by him, the dealer as herein defined, shall pay the
tax imposed by this chapter on all articles of tangible personal
property so imported and used, and on all services so purchased and
used, the same as if such articles or services had been sold at retail for
use or consumption in this state. For the purposes of this chapter, the
use, or consumption, or distribution, or storage to be used or consumed
in this state of tangible personal property shall each be equivalent to a
sale at retail; and the tax shall thereupon immediately levy and be
collected in the manner provided herein, provided there shall be no
duplication of the tax in any event.
(7) The provisions of this chapter do not apply in respect to the use or
consumption of tangible personal property or serfvies, or distribution
or storage of tangible personal property or services for use or
consumption in this state, upon which a like tax equal to or greater
than the amount imposed by this chapter has been lawfully imposed
and paid in another state, territory of the United States, or the District
of Columbia. The proof of payment of such tax shall be made according
to rules and regulations of the department. If the amount of tax paid in
another state, territory of the United States, or the District of
Columbia is not equal to or greater than the amount of tax imposed by
this chapter, then the dealer shall pay to the department an amount
sufficient to make the tax paid in the other state, territory of the
United States, or the District of Columbia and in this state equal to the
amount imposed by this chapter.
Section 9. (1) Paragraph (a) of subsection (1) and subsections (2), (4)
and (9) of section 212.07, Florida Statutes, 1986 Supplement, as
amended by section 13 of chapter 87-6, Laws of Florida, are amended
to read:
212.07 Sales, storage, use tax; tax added to purchase price; dealer
not to absorb; liability of purchasers who cannot prove payment of the
tax; penalties; general exemptions.-
(1)(a) The privilege tax herein levied measured by retail sales shall
be collected by the dealers from the purchaser or consumer. Except as
otherwise speeifieally provided, the sales and use tan on services
herein levied measured by retail sales shall likewise be collected by
the dealers from the purchaser er .onsum.er
(2) A dealer shall, as far as practicable, add the amount of the tax
imposed under this chapter to the sale price, and the amount of the tax

shall be separately stated as Florida tax on any charge ticket, sales
slip, invoice, or other tangible evidence of sale. Such tax shall

26

September 30, 1987

constitute a part of such price, charge, or proof of sale which shall be a
debt from the purchaser or consumer to the dealer, until paid, and
shall be recoverable at law in the same manner as other debts. Where
it is impracticable, due to the nature of the business practices within
an industry, to separately state Florida tax on any charge ticket, sales
slip, invoice, or other tangible evidence of sale, the department may
establish an effective tax rate for such industry. The department may
also amend this effective tax rate as the industry's pricing or practices
change. Except as otherwise specifically provided Any dealer who
neglects, fails, or refuses to collect the tax herein provided upon any,
every, and all retail sales made by him or his agents or employees of
tangible personal property or services which is are subject to the tax
imposed by this chapter shall be liable for and pay the tax himself.

(4) A dealer engaged in any business or in selling any services
taxable under this chapter may not advertise or hold out to the public,
in any manner, directly or indirectly, that he will absorb all or any
part of the tax, or that he will relieve the purchaser of the payment of
all or any part of the tax, or that the tax will not be added to the
selling price of the property or services sold or released or, when added,
that it or any part thereof will be refunded either directly or indirectly
by any method whatsoever. A person who violates this provision with
respect to advertising or refund is guilty of a misdemeanor of the
second degree, punishable as provided in s. 775.082 or s. 775.083. A
second or subsequent offense constitutes a misdemeanor of the first
degree, punishable as provided in s. 775.082 or s. 775.083.

(9) Any person who has purchased at retail, used, consumed,
distributed, or stored for use or consumption in this state tangible
personal property, admissions, communication or other services tax-
able under this part, or leased tangible personal property, or who has
leased, occupied, or used or was entitled to use any real property, space
or spaces in parking lots or garages for motor vehicles or docking or
storage space, or spaces for boats in boat docks or marinas and cannot
prove that the tax levied by this chapter has been paid to his vendor,
lessor, or other person is directly liable to the state for any tax,
interest, or penalty due on any such taxable transactions.

(2) Effective July 1, 1988, subsection (4) of section 212.07, Florida
Statutes, 1986 Supplement, as further amended by section 85 of
chapter 87-6 and section 53 of chapter 87-101, Laws of Florida, is
amended to read:

212.07 Sales, storage, use tax; tax added to purchase price; dealer
not to absorb; liability of purchasers who cannot prove payment of the
tax; penalties; general exemptions.-

(4) A dealer engaged in any business or in selling any services
taxable under this chapter may not advertise or hold out to the public,
in any manner, directly or indirectly, that he will absorb all or any
part of the tax, or that he will relieve the purchaser of the payment of
all or any part of the tax, or that the tax will not be added to the
selling price of the property or services sold or released or, when added,
that it or any part thereof will be refunded either directly or indirectly
by any method whatsoever. A person who violates this provision with
respect to advertising or refund is guilty of a misdemeanor of the
second degree, punishable as provided in s. 775.082, s. 775.083, or
s. 775.084. A second or subsequent offense constitutes a misdemeanor
of the first degree, punishable as provided in s. 775.082, s. 775.083, or
s. 775.084.

Section 10. (1) Paragraph (a) of subsection (2), paragraphs (b), (c) and
(d) of subsection (5) and paragraphs (e) and (o) of subsection (7) of
section 212.08, Florida Statutes, 1986 Supplement, as amended by
section 14 of chapter 87-6, chapter 87-72, and section 13 of chapter
87-101, Laws of Florida, are amended, and paragraph (v) is added to
subsection (7) of said section, to read:

212.08. Sales, rental, use, consumption, distribution, and storage
tax; specified exemptions.-The sale at retail, the rental, the use, the
consumption, the distribution, and the storage to be used or consumed
in this state of the following are hereby specifically exempt from the

tax imposed by part I of this chapter.

(2) EXEMPTIONS; MEDICAL.-

27

(a) There shall be exempt from the tax imposed by this chapter any
product, supply, or medicine dispensed in a retail establishment by a
pharmacist licensed by the state, according to an individual prescrip-
tion or prescriptions written by a prescriber authorized by law to
prescribe medicinal drugs; hypodermic needles; hypodermic syringes;
chemical compounds and test kits used for the diagnosis or treatment
of human disease, illness, or injury; and common household remedies
recommended and generally sold for internal or external use in the
cure, mitigation, treatment, or prevention of illness or disease in
human beings, but not including cosmetics or toilet articles, notwith-
standing the presence of medicinal ingredients therein, according to a
list prescribed and approved by the Department of Health and
Rehabilitative Services, which list shall be certified to the Department
of Revenue from time to time and included in the rules promulgated by
the Department of Revenue. There shall also be exempt from the tax
imposed by this chapter artificial eyes and limbs; orthopedic shoes;
prescription eyeglasses and items incidental thereto or which become a
part thereof; dentures; hearing aids; crutches; prosthetic and orthope-
dic appliances; feminine hygiene products, including, but not limited to,
sanitary panties, sanitary belts, sanitary napkins, and tampons; and
funerals. Funeral directors shall pay tax on all tangible personal
property used by them in their business.

(5) EXEMPTIONS; ACCOUNT OF USE.-

(b) Machinery and equipment used to increase productive output.-

1. Industrial machinery and equipment purchased for use in new
businesses which manufacture, process, compound, or produce for sale
items of tangible personal property at fixed locations and services
directly related to the installing ef such machinery and equipment
excluding construction services are exempt from the tax imposed by
this chapter upon an affirmative showing by the taxpayer to the
satisfaction of the department that such items are used in a new
business in this state. Such purchases must be made prior to the date
the business first begins its productive operations, and delivery of the
purchased item must be made within 12 months of that date.

2. Industrial machinery and equipment purchased for use in
expanding manufacturing facilities or plant units which manufacture,
process, compound, or produce for sale items of tangible personal
property at fixed locations in this state ad services directly related to
the installation ef such machinery and equipment, excluding ee-o
struction services, are exempt from any amount of tax imposed by this
chapter in excess of $100,000 per calendar year upon an affirmative
showing by the taxpayer to the satisfaction of the department that
such items are used to increase the productive output of such expanded
business by not less than 10 percent.

3.a. To receive an exemption provided by subparagraph 1. or
subparagraph 2., a qualifying business entity shall apply to the
department for a temporary tax exemption permit. The application
shall state that a new business exemption or expanded business
exemption is being sought. Upon a tentative affirmative determination
by the department pursuant to subparagraph 1. or subparagraph 2.,
the department shall issue such permit.

b. The applicant shall be required to maintain all necessary books
and records to support the exemption. Upon completion of purchases of
qualified machinery; and equipment era services pursuant to subpara-
graph 1. or subparagraph 2., the temporary tax permit shall be
delivered to the department or returned to the department by certified
or registered mail. The department shall have 4 years from the date of
delivery or date of receipt to perform an audit of such purchases,
notwithstanding the provisions of s. 212.14(6).

c. If, in a subsequent audit conducted by the department, it is
determined that the machinery; and equipment, oe services purchased
as exempt under subparagraph 1. or subparagraph 2. did not meet the
criteria mandated by this paragraph or if commencement of production
did not occur, the amount of taxes exempted at the time of purchase
shall immediately be due and payable to the department by the
business entity, together with the appropriate interest and penalty,

computed from the date of purchase, in the manner prescribed by this
chapter.

September 30, 1987

JOURNAL OF THE HOUSE OF REPRESENTATIVES

28 JOURNAL OF THE HOUSE

d. In the event a qualifying business entity fails to apply for a
temporary exemption permit or if the tentative determination by the
department required to obtain a temporary exemption permit is
negative, a qualifying business entity shall receive the exemption
provided in subparagraph 1. or subparagraph 2, through a refund of
previously paid taxes. No refund may be made for such taxes unless
the criteria mandated by subparagraph 1. or subparagraph 2. have
been met and commencement of production has occurred.
4. The department shall promulgate rules governing applications for,
issuance of, and the form of temporary tax exemption permits;
provisions for recapture of taxes; and the manner and form of refund
applications and may establish guidelines as to the requisites for an
affirmative showing of increased productive output, commencement of
production, and qualification for exemption.
5. The exemptions provided in subparagraphs 1. and 2. do not apply
to machinery; or equipment; eo services purchased or used by electric
utility companies, communications companies, phosphate or other solid
minerals severance, mining, or processing operations, oil or gas
exploration or production operations, printing or publishing firms, any
firm subject to regulation by the Division of Hotels and Restaurants of
the Department of Business Regulation, or any firm which does not
manufacture, process, compound, or produce for sale items of tangible
personal property.
6. For the purposes of the exemptions provided in subparagraphs 1.
and 2., these terms have the following meanings:
a. "Industrial machinery and equipment" means "section 38 proper-
ty" as defined in s. 48(a)(1)(A) and (B)(i) of the Internal Revenue Code,
provided "industrial machinery and equipment" shall be construed by
regulations adopted by the Department of Revenue to mean tangible
property used as an integral part of the manufacturing, processing,
compounding, or producing for sale of items of tangible personal
property. Such term includes parts and accessories only to the extent
that the exemption thereof is consistent with the provisions of this
paragraph.
b. "Productive output" means the number of units actually produced
by a single plant or operation in a single continuous 12-month period,
irrespective of sales. Increases in productive output shall be measured
by the output for 12 continuous months immediately following the
completion of installation of such machinery or equipment over the
output for the 12 continuous months immediately preceding such
installation. However, if a different 12-month continuous period of
time would more accurately reflect the increase in productive output of
machinery and equipment purchased to facilitate an expansion, the
increase in productive output may be measured during that 12-month
continuous period of time if such time period is mutually agreed upon
by the Department of Revenue and the expanding business prior to the
commencement of production; but in no case may such time period
begin later than 2 years following the completion of installation of the
new machinery and equipment. The units used to measure productive
output shall be physically comparable between the two periods,
irrespective of sales.
(c) Machinery; and equipment or cr evices used in production of
electrical or steam energy.-The purchase of machinery and equip-
ment for use at a fixed location, which equipment and machinery are
necessary in the production of electrical or steam energy resulting
from the burning of boiler fuels other than residual oil, is an services
directly related to the installation of eekh machinery and equipment,
e.eleding eenstruetien services, are exempt from the tax imposed by
this chapter. Such electrical or steam energy must be primarily for use
in manufacturing, processing, compounding, or producing for sale
items of tangible personal property in this state. However, the
exemption provided for in this paragraph shall not be allowed unless
the purchaser signs an affidavit stating that the item or items to be
exempted are for the exclusive use designated herein. Any person
furnishing a false affidavit to the vendor for the purpose of evading

payment of any tax imposed under chapter 212 shall be subject to the
penalty set forth in s. 212.085 and as otherwise provided by law.
(d) Machinery? and equipment; er services used under federal
procurement contract.-

E

SOF REPRESENTATIVES September 30, 1987

1. Industrial machinery and equipment purchased by an expanding
business which manufactures tangible personal property pursuant to
federal procurement regulations at fixed locations in this state and
services directly related to the installation of sueh machinery and
equipment, exelding eenstruetien servietes, are partially exempt from
the tax imposed in this chapter on that portion of the tax which is in
excess of $100,000 per calendar year upon an affirmative showing by
the taxpayer to the satisfaction of the department that such items are
used to increase the implicit productive output of the expanded
business by not less than 10 percent. The percentage of increase is
measured as deflated implicit productive output for the calendar year
during which the installation of the machinery or equipment is
completed or during which commencement of production utilizing such
items is begun divided by the implicit productive output for the
preceding calendar year. In no case may the commencement of
production begin later than 2 years following completion of installation
of the machinery or equipment.
2. The amount of the exemption allowed shall equal the taxes
otherwise imposed by this chapter in excess of $100,000 per calendar
year on qualifying industrial machinery; or equipment, er services
reduced by the percentage of gross receipts from cost-reimbursement
type contracts attributable to the plant or operation to total gross
receipts so attributable, accrued for the year of completion or
commencement.
3. The exemption provided by this paragraph shall inure to the
taxpayer only through refund of previously paid taxes. Such refund
shall be made within 30 days of formal approval by the department of
the taxpayer's application, which application may be made on an
annual basis following installation of the machinery or equipment.
4. For the purposes of this paragraph, the term:
a. "Cost-reimbursement type contracts" has the same meaning as in
32 C.F.R. s. 3-405.
b. "Deflated implicit productive output" means the product of
implicit productive output times the quotient of the national defense
implicit price deflator for the preceding calendar year divided by the
deflator for the year of completion or commencement.
c. "Eligible costs" means the total direct and indirect costs, as
defined in 32 C.F.R. ss. 15-202 and 15-203, excluding general and
administrative costs, selling expenses, and profit, defined by the
uniform cost-accounting standards adopted by the Cost-Accounting
Standards Board created pursuant to 50 U.S.C. s. 2168.
d. "Implicit productive output" means the annual eligible costs
attributable to all contracts or subcontracts subject to federal procure-
ment regulations of the single plant or operation at which the
machinery or equipment is used.
e. "Industrial machinery and equipment" means "section 38 proper-
ty" as defined in s. 48(a)(1)(A) and (B)(i) of the Internal Revenue Code,
provided such industrial machinery and equipment qualified as an
eligible cost under federal procurement regulations and are used as an
integral part of the tangible personal property production process.
Such term includes parts and accessories only to the extent that the
exemption of such parts and accessories is consistent with the
provisions of this paragraph.
f. "National defense implicit price deflator" means the national
defense implicit price deflator for the gross national product as
determined by the Bureau of Economic Analysis of the United States
Department of Commerce.
5. The exclusions provided in subparagraph (b)5. apply to this
exemption. This exemption applies only to machinery or equipment
purchased pursuant to production contracts with the United States
Department of Defense and Armed Forces, the National Aeronautics
and Space Administration, and other federal agencies for which the

contracts are classified for national security reasons. In no event shall
the provisions of this paragraph apply to any expanding business the
increase in productive output of which could be measured under the
provisions of sub-subparagraph (b)6.b. as physically comparable be-
tween the two periods.

JOURNAL OF THE HOUSE

(7) MISCELLANEOUS EXEMPTIONS.-
(e) Film rentals.-Film rentals are exempt when an admission is
charged for viewing such film.5 and l4iense fees ad diireet e charges for
films videotapes, and transcriptions used by television or radie
stations or networks are exempt However this exemption shall net be
eenstrued to exempt the sale er use of adver-ising.
(o) Religious, charitable, scientific, educational, and veterans' insti-
tutions and organizations.-
1. There are exempt from the tax imposed by part I of this chapter
transactions involving:
a. Sales or leases directly to churches or sales or leases of tangible
personal property or services by churches;
b. Sales or leases to nonprofit religious, nonprofit charitable,
nonprofit scientific, or nonprofit educational institutions when used in
carrying on their customary nonprofit religious, nonprofit charitable,
nonprofit scientific, or nonprofit educational activities, including
church cemeteries; and
c. Sales or leases to the state headquarters of qualified veterans'
organizations and the state headquarters of their auxiliaries when
used in carrying on their customary veterans' organization activities.
If a qualified veterans' organization or its auxiliary does not maintain
a permanent state headquarters, then transactions involving sales or
leases to such organization and used to maintain the office of the
highest ranking state official are exempt from the tax imposed by this
part.
2. The provisions of this section authorizing exemptions from tax
shall be strictly defined, limited, and applied in each category as
follows:
a. "Religious institutions" means churches, synagogues, and estab-
lished physical places for worship at which nonprofit religious services
and activities are regularly conducted and carried on. The term
"religious institutions" includes nonprofit corporations the sole purpose
of which is to provide free transportation services to church members,
their families, and other church attendees. The term "religious
institutions" also includes state, district, or other governing or
administrative offices the function of which is to assist or regulate the
customary activities of religious organizations or members.
b. "Charitable institutions" means only nonprofit corporations
qualified as nonprofit pursuant to s. 501(c)(3), United States Internal
Revenue Code, 1954, as amended, and other nonprofit entities, the sole
or primary function of which is to provide, or to raise funds for
organizations which provide, one or more of the following services if a
reasonable percentage of such service is provided free of charge, or at a
substantially reduced cost, to persons, animals, or organizations that
are unable to pay for such service:
(I) Medical aid for the relief of disease, injury, or disability;
(II) Regular provision of physical necessities such as food, clothing,
or shelter;
(III) Services for the prevention of, or rehabilitation of persons from,
alcoholism or drug abuse; the prevention of suicide; or the alleviation
of mental, physical, or sensory health problems;
(IV) Social welfare services including adoption placement, child care,
community care for the elderly, and other social welfare services which
clearly and substantially benefit a client population which is disad-
vantaged or suffers a hardship;
(V) Medical research for the relief of disease, injury, or disability;
(VI) Legal services; or
(VII) Food, shelter, or medical care for animals or adoption services,
cruelty investigations, or education programs concerning animals;
and the term includes groups providing volunteer manpower to
organizations designated as charitable institutions hereunder.

c. "Scientific organizations" means scientific organizations which
hold current exemptions from federal income tax under s. 501(c)(3) of
the Internal Revenue Code and also means organizations the purpose

September 30, 1987

directly related to the installation of sneh* machinery and equipment,
excluding eenstreetion services are exempt from the tax imposed by
this chapter upon an affirmative showing by the taxpayer to the
satisfaction of the department that such items are used in a new
business in this state. Such purchases must be made prior to the date

SOF REPRESENTATIVES 29

of which is to protect air and water quality or the purpose of which is
to protect wildlife and which hold current exemptions from the federal
income tax under s. 501(c)(3) of the Internal Revenue Code.
d. "Educational institutions" means state tax-supported or parochial,
church and nonprofit private schools, colleges, or universities which
conduct regular classes and courses of study required for accreditation
by, or membership in, the Southern Association of Colleges and
Schools, the Department of Education, the Florida Council of Indepen-
dent Schools, or the Florida Association of Christian Colleges and
Schools, Inc., or which conduct regular classes and courses of study
accepted for continuing education credit by the American Medical
Association or the American Dental Association. Nonprofit libraries,
art galleries, and museums open to the public are defined as
educational institutions and are eligible for exemption. The term
"educational institutions" includes private nonprofit organizations the
purpose of which is to raise funds for schools teaching grades
kindergarten through high school, colleges, and universities. The term
"educational institutions" includes any nonprofit newspaper of free or
paid circulation primarily on university or college campuses which
holds a current exemption from federal income tax under s. 501(c)(3) of
the Internal Revenue Code, and any educational television or radio
network or system established pursuant to s. 229.805 or s. 229.8051
and any nonprofit television or radio station which is a part of such
network or system and which holds a current exemption from federal
income tax under s. 501(c)(3) of the Internal Revenue Code. The term
"educational institutions" also includes state, district, or other govern-
ing or administrative offices the function of which is to assist or
regulate the customary activities of educational organizations or
members.
e. "Veterans' organizations" means nationally chartered or recog-
nized veterans' organizations, including, but not limited to, Florida
chapters of the Paralyzed Veterans of America, Catholic War Veterans
of the U.S.A., and Jewish War Veterans of the U.S.A. and the Disabled
American Veterans, Department of Florida, Inc., which hold current
exemptions from federal income tax under s. 501(c)(4) or s. 501(c)(19)
of the Internal Revenue Code.
(v)l. Also exempted are professional, insurance, or personal service
transactions which involve sales as inconsequential elements for which
no separate charges are made.
2. The above-exempted personal service transactions do not exempt the
sale of information services involving the furnishing of printed,
mimeographed, or multigraphed matter, or matter duplicating written
or printed matter in any other manner, other than professional services
and services of employees, agents, or other persons acting in a
representative or fiduciary capacity or information services furnished to
newspapers and radio and television stations. The term "information
services" means and includes the services of collecting, compiling, or
analyzing information of any kind or nature and furnishing reports
thereof to other persons.
(2) Effective July 1, 1988, paragraph (b) of subsection (5) of section
212.08, Florida Statutes, 1986 Supplement, as further amended by
section 59 of chapter 87-6 and section 34 of chapter 87-101, Laws of
Florida, is amended to read:
212.08 Sales, rental, use, consumption, distribution, and storage tax;
specified exemptions.-The sale at retail, the rental, the use, the
consumption, the distribution, and the storage to be used or consumed
in this state of the following are hereby specifically exempt from the
tax imposed by part I of this chapter.
(5) EXEMPTIONS; ACCOUNT OF USE.-
(b) Machinery and equipment used to increase productive output.-
1. Industrial machinery and equipment purchased for use in new
businesses which manufacture, process, compound, or produce for sale
items of tangible personal property at fixed locations and services

30

the business first begins its productive operations, and delivery of the
purchased item must be made within 12 months of that date.
2. Industrial machinery and equipment purchased for use in
expanding manufacturing facilities or plant units which manufacture,
process, compound, or produce for sale items of tangible personal
property at fixed locations in this state and ser-vies directly related to
the installation of sueh machinery and equipment, eeluding ef-o
struetion services, are exempt from any amount of tax imposed by this
chapter in excess of $100,000 per calendar year upon an affirmative
showing by the taxpayer to the satisfaction of the department that
such items are used to increase the productive output of such expanded
business by not less than 10 percent.
3.a. To receive an exemption provided by subparagraph 1. or
subparagraph 2., a qualifying business entity shall apply to the
department for a temporary tax exemption permit. The application
shall state that a new business exemption or expanded business
exemption is being sought. Upon a tentative affirmative determination
by the department pursuant to subparagraph 1. or subparagraph 2.,
the department shall issue such permit.
b. The applicant shall be required to maintain all necessary books
and records to support the exemption. Upon completion of purchases of
qualified machinery- and equipment5 or services pursuant to subpara-
graph 1. or subparagraph 2., the temporary tax permit shall be
delivered to the department or returned to the department by certified
or registered mail.
c. If, in a subsequent audit conducted by the department, it is
determined that the machinery, and equipment- er services purchased
as exempt under subparagraph 1. or subparagraph 2. did not meet the
criteria mandated by this paragraph or if commencement of production
did not occur, the amount of taxes exempted at the time of purchase
shall immediately be due and payable to the department by the
business entity, together with the appropriate interest and penalty,
computed from the date of purchase, in the manner prescribed by this
chapter.
d. In the event a qualifying business entity fails to apply for a
temporary exemption permit or if the tentative determination by the
department required to obtain a temporary exemption permit is
negative, a qualifying business entity shall receive the exemption
provided in subparagraph 1. or subparagraph 2. through a refund of
previously paid taxes. No refund may be made for such taxes unless
the criteria mandated by subparagraph 1. or subparagraph 2. have
been met and commencement of production has occurred.
4. The department shall promulgate rules governing applications for,
issuance of, and the form of temporary tax exemption permits;
provisions for recapture of taxes; and the manner and form of refund
applications and may establish guidelines as to the requisites for an
affirmative showing of increased productive output, commencement of
production, and qualification for exemption.
5. The exemptions provided in subparagraphs 1. and 2. do not apply
to machinery, or equipment, or services purchased or used by electric
utility companies, communications companies, phosphate or other solid
minerals severance, mining, or processing operations, oil or gas
exploration or production operations, printing or publishing firms, any
firm subject to regulation by the Division of Hotels and Restaurants of
the Department of Business Regulation, or any firm which does not
manufacture, process, compound, or produce for sale items of tangible
personal property.
6. For the purposes of the exemptions provided in subparagraphs 1.
and 2., these terms have the following meanings:
a. "Industrial machinery and equipment" means "section 38 proper-
ty" as defined in s. 48(a)(1)(A) and (B)(i) of the Internal Revenue Code,
provided "industrial machinery and equipment" shall be construed by
regulations adopted by the Department of Revenue to mean tangible
property used as an integral part of the manufacturing, processing,
compounding, or producing for sale of items of tangible personal
property. Such term includes parts and accessories only to the extent

that the exemption thereof is consistent with the provisions of this
paragraph.

September 30, 1987

b. "Productive output" means the number of units actually produced
by a single plant or operation in a single continuous 12-month period,
irrespective of sales. Increases in productive output shall be measured
by the output for 12 continuous months immediately following the
completion of installation of such machinery or equipment over the
output for the 12 continuous months immediately preceding such
installation. However, if a different 12-month continuous period of
time would more accurately reflect the increase in productive output of
machinery and equipment purchased to facilitate an expansion, the
increase in productive output may be measured during that 12-month
continuous period of time if such time period is mutually agreed upon
by the Department of Revenue and the expanding business prior to the
commencement of production; but in no case may such time period
begin later than 2 years following the completion of installation of the
new machinery and equipment. The units used to measure productive
output shall be physically comparable between the two periods,
irrespective of sales.
Section 11. Paragraph (a) of subsection (3), paragraph (c) of
subsection (4), and paragraph (a) of subsection (6) of section 212.095,
Florida Statutes, as amended by chapters 87-6 and 87-101, Laws of
Florida, are amended to read:
212.095 Refunds.-
(3)(a) When a sale is made to a person who claims to be entitled to a
refund under this section, the seller shall make out a sales invoice,
which shall contain the following information:
1. The name and business address of the purchaser.
2. A description of the item or services sold.
3. The date on which the purchase was made.
4. The price and amount of tax paid for the item er services.
5. The name and place of business of the seller at which the sale was
made.
6. The refund permit number of the purchaser.
(4)
(c) Refund application forms shall include at a minimum the
following information:
1. The name and address of the person claiming the refund.
2. The refund permit number of such person.
3. The location at which the items or services for which a refund is
claimed are used.
4. A description of each such item or service and the purpose for
which such item or service was acquired.
5. Copies of the sales invoices of items er services for which a refund
is being claimed.
(6)(a) Each registered dealer shall, in accordance with the require-
ments of the department, keep at his principal place of business in this
state or at the location where the sale is made a complete record or
duplicate sales tickets of all items oe servees sold by him for which.a
refund provided in this section may be claimed, which records shall
contain the information required in paragraph (3)(a).
Section 12. Paragraph (d) of subsection (1) of section 212.11, Florida
Statutes, as created by chapter 87-6, Laws of Florida, and amended by
chapter 87-101, Laws of Florida, is hereby repealed.
Section 13. Paragraph (b) of subsection (5) and subsections (7) and
(9) of section 212.12, Florida Statutes, 1986 Supplement, as amended
by chapters 87-6 and 87-101, Laws of Florida, are amended to read:
212.12 Dealer's credit for collecting tax; penalties for noncompliance;
powers of Department of Revenue in dealing with delinquents;
brackets applicable to taxable transactions; records required.-
(5)
(b) In the event any dealer or other person charged herein fails or

refuses to make his records available for inspection so that no audit or
examination has been made of the books and records of such dealer or

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JOURNAL OF THE HOUSE

person, fails or refuses to register as a dealer, or fails to make a report
and pay the tax as provided by this chapter; or makes a grossly
incorrect report, or makes a report that is false or fraudulent, then, in
such event, it shall be the duty of the department to make an
assessment from an estimate based upon the best information then
available to it for the taxable period of retail sales of such dealer, the
gross proceeds from rentals, the total admissions received, amounts
received from leases of tangible personal property by such dealer, or of
the cost price of all articles of tangible personal property imported by
the dealer for use or consumption or distribution or storage to be used
or consumed in this state or of the sales or eost priee of all services the
sale or use of which is taxable under this part, together with interest,
plus penalty, if such have accrued, as the case may be. Then the
department shall proceed to collect such taxes, interest, and penalty on
the basis of such assessment, which shall be considered prima facie
correct; and the burden to show the contrary shall rest upon the dealer,
seller, owner, or lessor, as the case may be.

(7) In the event the dealer has imported tangible personal property
or has acquired services outside he state for sale or use i this state
and he fails to produce an invoice showing the cost price of the articles
o services, as defined in this chapter, which are subject to tax, or the
invoice does not reflect the true or actual cost price as defined herein,
then the department shall ascertain, in any manner feasible, the true
cost price, and assess and collect the tax thereon with interest plus
penalties, if such have accrued on the true cost price as assessed by it.
The assessment so made shall be considered prima facie correct, and
the duty shall be on the dealer to show to the contrary.
(9) Taxes imposed by this chapter upon the privilege of the use,
consumption, storage for consumption, or sale of tangible personal
property, admissions, license fees, rentals, and communication serv-
ices- and upon the sale or use of services as herein taxed shall be
collected upon the basis of an addition of the tax imposed by this
chapter to the total price of such admissions, license fees, rentals,
communication oe other services, or sale price of such article or articles
that are purchased, sold, or leased at any one time by or to a customer
or buyer; and the dealer, or person charged herein, is required to pay a
privilege tax in the amount of the tax imposed by this chapter on the
total of his gross sales of tangible personal property, admissions,
license fees, rentals, and communications services oe to eolleet a tax
upon the sale or use of services, and such person or dealer shall add the
tax imposed by this chapter to the price, license fee, rental, or
admissions, and communication or other services and collect the total
sum from the purchaser, admittee, licensee, lessee, or consumer.
Notwithstanding the rate of taxes imposed upon the privilege of sales,
admissions, license fees, rentals, and communication services, or upon
the sale or use of services the following brackets shall be applicable to
all transactions taxable at the rate of 5 percent:
(a) On single sales of less than 10 cents, no tax shall be added.
(b) On single sales in amounts from 10 cents to 20 cents, both
inclusive, 1 cent shall be added for taxes.
(c) On sales in amounts from 21 cents to 40 cents, both inclusive, 2
cents shall be added for taxes.
(d) On sales in amounts from 41 cents to 60 cents, both inclusive, 3
cents shall be added for taxes.
(e) On sales in amounts from 61 cents to 80 cents, both inclusive, 4
cents shall be added for taxes.
(f) On sales in amounts from 81 cents to $1, both inclusive, 5 cents
shall be added for taxes.

(g) On sales in amounts of more than $1, 5 percent shall be charged
upon each dollar of price, plus the appropriate bracket charge upon any
fractional part of a dollar.
Section 14. (1) Subsections (2), (3) and (4) of section 212.13, Florida
Statutes, as amended by section 18 of chapter 87-6, Laws of Florida,
are amended to read:

212.13 Records required to be kept; power to inspect; audit
procedure.-

September 30, 1987

time for assessments.-
(1) Any person required to pay a tax imposed under this chapter, or
to make a return, either or both, and who renders a return or makes a
payment of a tax with intent to deceive or defraud the state, and to

OF REPRESENTATIVES 31

(2) Each dealer, as defined in this chapter, shall secure, maintain,
and keep for a period of 3 years a complete record of tangible personal
property or services received, used, sold at retail, distributed or stored,
leased or rented by said dealer, together with invoices, bills of lading,
gross receipts from such sales, and other pertinent records and papers
as may be required by the department for the reasonable administra-
tion of this chapter; and all such records which are located or
maintained in this state shall be open for inspection by the department
at all reasonable hours at such dealer's store, sales office, general
office, warehouse, or place of business located in this state. Any dealer
who maintains such books and records at a point outside this state
must make such books and records available for inspection by the
department where the general records are kept. Any dealer subject to
the provisions of this chapter who violates these provisions is guilty of
a misdemeanor of the second degree, punishable as provided in
s. 775.082 or s. 775.083.
(3) For the purpose of enforcement of this chapter, every manufactur-
er and seller of tangible personal property or services licensed within
this state is required to permit the department to examine his books
and records at all reasonable hours; and, upon his refusal, the
department may require him to permit such examination by resort to
the circuit courts of this state, subject however to the right of removal
of the cause to the judicial circuit wherein such person's business is
located or wherein such person's books and records are kept, provided
further that such person's books and records are kept within the state.
(4) For the further purpose of enforcement of this chapter, every
wholesaler of tangible personal property or services licensed within
this state is required to permit the department to examine his books
and records at all reasonable hours. He must also maintain such books
and records for a period of not less than 3 years in order to disclose the
sales of all goods or services sold, and to whom sold, and also the
amount of items sold, in such form and in such manner as the
department may reasonably require, and so as to permit the depart-
ment to determine the volume of goods or services sold by wholesalers
to dealers, as defined under this chapter, and the dates and amounts of
sales made. The department may require any manufacturer or
wholesaler who refuses to keep such records or to permit such
inspection through the circuit courts of Florida to submit to such
inspection, subject however to the right of removal of the cause as
hereinbefore provided in this section.
(2) Effective July 1, 1988, subsection (2) of section 212.13, Florida
Statutes, as amended by section 89 of chapter 87-6 and section 57 of
chapter 87-101, Laws of Florida, is amended to read:
212.13 Records required to be kept; power to inspect; audit
procedure.-
(2) Each dealer, as defined in this chapter, shall secure, maintain,
and keep for a period of 3 years a complete record of tangible personal
property or services received, used, sold at retail, distributed or stored,
leased or rented by said dealer, together with invoices, bills of lading,
gross receipts from such sales, and other pertinent records and papers
as may be required by the department for the reasonable administra-
tion of this chapter; and all such records which are located or
maintained in this state shall be open for inspection by the department
at all reasonable hours at such dealer's store, sales office, general
office, warehouse, or place of business located in this state. Any dealer
who maintains such books and records at a point outside this state
must make such books and records available for inspection by the
department where the general records are kept. Any dealer subject to
the provisions of this chapter who violates these provisions is guilty of
a misdemeanor of the first degree, punishable as provided in
s. 775.082, s. 775.083, or s. 775.084.
Section 15. Subsection (1) of section 212.14, Florida Statutes, 1986
Supplement, as amended by chapter 87-6, Laws of Florida, is amended
to read:
212.14 Departmental powers; hearings, subpoena; distress warrants;

JOURNAL OF THE HOUSE OF REPRESENTATIVES

prevent the state from collecting the amount of taxes imposed by this
chapter, or otherwise fails to comply with the provisions of this chapter
for the taxable period for which any return is made, or any tax is paid,
or any report is made to the department, may be required by the
department to show cause at a time and place to be set by the
department, after 10 days' notice in writing requiring such books,
records, or papers as the department may require relating to the
business of such person for such tax period, and the department may
require such person, or persons, or their employee or employees to give
testimony under oath and answer interrogatories by the department,
or an assistant, respecting the sale, use, consumption, distribution, or
storage rental or license for use of real or personal property er services
within the state, or admissions collected therein, or the failure to make
a true report thereof, as provided by this chapter, or failure to pay the
true amount of the tax required to be paid under this chapter. At said
hearing, in the event such person fails to produce such books, records,
or papers, or to appear and answer questions within the scope of
investigation relating to matters concerning taxes to be imposed under
this chapter, or prevents or impedes his or her agents or employees
from giving testimony, then the department is authorized under this
chapter to estimate any unpaid deficiencies in taxes to be assessed
against such person upon such information as may be available to it
and to issue a distress warrant for the collection of such taxes, interest,
or penalties estimated by him to be due and payable, and such
assessment shall be deemed prima facie correct. In such cases said
warrant shall be issued to any sheriff in the state where such person
owns or possesses any property and such property as may be required
to satisfy any such taxes, interest, or penalties shall be by such sheriff
seized and sold under said distress warrant in the same manner as
property is permitted to be seized and sold under distress warrants
issued to secure the payments of delinquent taxes as hereinafter
provided, and the department shall also have the right to writ of
garnishment to subject any indebtedness due to the delinquent dealer
by a third person in any goods, money, chattels, or effects of the
delinquent dealer in the hands, possession, or control of the third
person in the manner provided by law. Respecting the place for the
holding of a hearing by the department or its agents as provided in this
section, the person whose tax return or report being investigated may
by written request to the department require the hearing be set at a
place within the judicial circuit of Florida wherein the person's
business is located or within the judicial circuit of Florida wherein
such person's books and records are kept.
Section 16. Subsections (3) and (7) of section 212.17, Florida
Statutes, 1986 Supplement, as amended by chapter 87-6, Laws of
Florida, are amended to read:
212.17 Credits for returned goods, returned payments fwor seiee ,
rentals, or admissions; additional powers of department.-
(3) A dealer who has paid the tax imposed by this chapter on
tangible personal property or services may take a credit or obtain a
refund for any tax paid by him on the unpaid balance due on worthless
accounts within 12 months following the month in which the bad debt
has been charged off for federal income tax purposes. If any accounts so
charged off for which a credit or refund has been obtained are
thereafter in whole or in part paid to the dealer, the amount so paid
shall be included in the first return filed after such collection and the
tax paid accordingly.
(7) The department, where admissions, license fees, or rental
payments or payments for services are made and thereafter returned to
the payers after the taxes thereon have been paid, shall return or
credit the taxpayer for taxes so paid on the moneys returned in the
same manner as is provided for returns or credits of taxes where
purchases or tangible personal property are returnable to a dealer.
Section 17. (1) Subsection (3) of section 212.18, Florida Statutes,
1986 Supplement, as amended by section 21 of chapter 87-6 and
chapter 87-402, Laws of Florida, is amended to read:
212.18 Administration of law; rules and regulations.--
(3) Every person desiring to engage in or conduct business in this

state as a dealer, as defined in this chapter, or to lease, rent, or let or
grant licenses in living quarters or sleeping or housekeeping accom-

modations in hotels, apartment houses, roominghouses, tourist or
trailer camps, or real property, as defined in this chapter, and every
person who sells or receives anything of value by way of admissions,
shall file with the department an application for a certificate of
registration for each place of business, showing the names of the
persons who have interests in such business and their residences, the
address of the business, and such other data as the department may
reasonably require. The application shall be made to the department
before the person, firm, copartnership, or corporation may engage in
such business; and it shall be accompanied by a registration fee of $5.
However, no registration fee is required to accompany an application
to engage in or conduct business to make mail order sales. The
department, upon receipt of such application, will grant to the
applicant a separate certificate of registration for each place of
business, which certificate may be canceled by the department or its
designated assistants for any failure by the certificateholder to comply
with any of the provisions of this chapter. The certificate shall not be
assignable and shall be valid only for the person, firm, copartnership,
or corporation to which issued; and such certificate shall be placed in a
conspicuous place in the business or businesses for which it is issued
and shall be so displayed at all times. No person shall engage in
business as a dealer or in leasing, renting, or letting of or granting
licenses in living quarters or sleeping or housekeeping accommodations
in hotels, apartment houses, roominghouses, tourist or trailer camps,
or real property as hereinbefore defined, nor shall any person sell or
receive anything of value by way of admissions, without first having
obtained such a certificate or after such certificate has been canceled;
and no person shall receive any license from any authority within the
state to engage in any such business without first having obtained
such a certificate or after such certificate has been canceled. The
engaging in the business of selling or leasing tangible personal
property or services or as a dealer, as defined in this chapter, or the
engaging in leasing, renting, or letting of or granting licenses in living
quarters or sleeping or housekeeping accommodations in hotels,
apartment houses, roominghouses, tourist or trailer camps, or real
property as hereinbefore defined, or the engaging in the business of
selling or receiving anything of value by way of admissions, without
such certificate first being obtained or after such certificate has been
canceled by the department is prohibited. The failure or refusal of any
person, firm, copartnership, or corporation to so qualify when required
hereunder is a misdemeanor of the second degree, punishable as
provided in s. 775.082, s. 775.083, or s. 775.084, or subject to injunctive
proceedings as provided by law.

(2) Effective July 1, 1988, subsection (3) of section 212.18, Florida
Statutes, 1986 Supplement, as further amended by section 92 of
chapter 87-6 and section 60 of chapter 87-101, Laws of Florida, is
amended to read:

212.18 Administration of law; rules and regulations.-

(3) Every person desiring to engage in or conduct business in this
state as a dealer, as defined in this chapter, or to lease, rent, or let or
grant licenses in living quarters or sleeping or housekeeping accom-
modations in hotels, apartment houses, roominghouses, tourist or
trailer camps, or real property, as defined in this chapter, and every
person who sells or receives anything of value by way of admissions,
shall file with the department an application for a certificate of
registration for each place of business, showing the names of the
persons who have interest in such business and their residences, the
address of the business, and such other data as the department may
reasonably require. The application shall be made to the department
before the person, firm, copartnership, or corporation may engage in
such business; and it shall be accompanied by a registration fee of $5.
However, no registration fee is required to accompany an application
to engage in or conduct business or make mail order sales. The
department, upon receipt of such application, will grant to the
applicant a separate certificate of registration for each place of
business, which certificate may be canceled by the department or its
designated assistants for any failure by the certificateholder to comply
with any of the provisions of this chapter. The certificate shall not be
assignable and shall be valid only for the person, firm, copartnership,

or corporation to which issued; and such certificate shall be placed in a
conspicuous place in the business or businesses for which it is issued

September 30, 1987

32

JOURNAL OF THE HOUSI

and shall be so displayed at all times. No person shall engage in
business as a dealer or in leasing, renting, or letting of or granting
licenses in living quarters or sleeping or housekeeping accommoda-
tions in hotels, apartment houses, roominghouses, tourist or trailer
camps, or real property as hereinbefore defined, nor shall any person
sell or receive anything of value by way of admissions, without first
having obtained such a certificate or after such certificate has been
canceled; and no person shall receive any license from any authority
within the state to engage in any such business without first having
obtained such a certificate or after such certificate has been canceled.
The engaging in the business of selling or leasing tangible personal
property or series or as a dealer, as defined in this chapter, or the
engaging in leasing, renting, or letting of or granting licenses in living
quarters or sleeping or housekeeping accommodations in hotels,
apartment houses, roominghouses, tourist or trailer camps, or real
property as hereinbefore defined, or the engaging in the business of
selling or receiving anything of value by way of admissions, without
such certificate first being obtained or after such certificate has been
canceled by the department is prohibited. The failure or refusal of any
person, firm, copartnership, or corporation to so qualify when required
hereunder is a misdemeanor of the first degree, punishable as provided
in s. 775.082, s. 775.083 or s. 775.084, or subject to injunctive proceed-
ings as provided by law.
Section 18. Subsection (3) of section 212.21, Florida Statutes, as
amended by chapter 87-6, Laws of Florida, is amended to read:
212.21 Declaration of legislative intent.-
(3) It is further declared to be the specific legislative intent to
exempt from the tax or taxes or from the operation or the imposition
thereof only such sales, admissions, uses, storage, consumption or
rentals in relation to or in respect of the things set forth by this
chapter as exempted from the tax to the extent that such exemptions
are in accordance with the provisions of the constitutions of the state
and of the United States. It is further declared to be the specific
legislative intent to tax each and every taxable privilege made subject
to the tax or taxes, and eaeh and every taxable service made subject to
the tax or taxes, except such sales, admissions, uses, storage,
consumption or rentals as are specifically exempted therefrom by this
chapter to the extent that such exemptions are in accordance with the
provisions of the constitutions of the state and of the United States.
Section 19. Section 212.61, Florida Statutes, as amended by chapter
87-6, Laws of Florida, is amended to read:
212.61 Definitions.-As used in this part, the term:
(1) "Dealer" means any person who holds a valid license as a dealer
of special fuel, issued by the department pursuant to s. 206.89, and
who:
(a) Imports and sells at wholesale, retail, or otherwise within this
state any special fuel;
(b) Imports, or causes to be imported, and withdraws for use within
this state by himself or others any special fuel from the tank car,
truck, or other original container or package in which it was imported
into this state;
(c) Exports special fuel from this state to another state or foreign
country;
(d) Manufactures, refines, produces, or compounds any special fuel
within this state and sells such fuel at wholesale, retail, or otherwise
within this state;
(e) Imports into this state from any other state or foreign country, or
receives by any means into this state and keeps in storage in this state
for a period of 24 hours or more after the fuel loses interstate character
as a shipment in interstate commerce, any special fuel which is
intended to be used in this state;
(f) Is primarily liable under the special fuel tax laws of this state for
the payment of special fuel taxes;
(g) Purchases or receives in this state special fuel in bulk quantities
for resale to service stations, to a user or another dealer, or to the

ultimate consumer for nontaxable consumption upon which the tax has
not been paid; or

September 30, 1987

(d) The State Infrastructure Fund shall consist of all moneys
received from proceeds earmarked for this fund pursuant to s.
es- 201.15, 206.875 and 212.235. Sueh moneys shall ly be expended
pursuant to ltive appropriations for infrastructure faeilitie
listed in & 212.235(2).

OF REPRESENTATIVES 33

(h) Has both a taxable use and nontaxable consumption of the same
special fuel in this state. However, this paragraph does not require
that a person be a dealer when his only purchases of special fuel are
delivered into reservoirs attached to motor vehicles to fuel internal
combustion engines attached to such motor vehicles.
(2) "Refiner," "importer," or "wholesaler" means any person who
holds a valid license as a refiner, importer, or wholesaler, as defined in
s. 206.01, of motor fuel, issued by the department pursuant to
ss. 206.02 and 206.03.
(3) "Retail dealer" means any person who is licensed pursuant to
chapter 206 to sell motor fuel or special fuel at retail to the general
public at posted retail prices.
The definitions contained in s. 212.02(2), (5), (8), (11), (13), (14), (15),
(16), (17), (18), (19), (21), and (22) S- 212.0 2(3), 4(12 (154, 1 (18),
(9)2 (2O% (21, (23)2 (25) (27) and (28) apply to the same terms as used
in this part.
Section 20. Subsection (1) of section 32 and sections 38, 47, and 109
of chapter 87-6, Laws of Florida, as amended by chapter 87-101, Laws
of Florida, are hereby repealed.
Section 21. Section 212.235, Florida Statutes, as created by chapter
87-6, Laws of Florida, and amended by chapter 87-101, Laws of
Florida, is amended to read:
212.235 State Infrastructure Trust Fund; deposits.-
(1) Notwithstanding the provisions of ss. 212.20(1) and 218.61, in
fiscal year 1987-1988 an amount equal to 2 percent and in eaeh fiscal
year thereafter an amount equal to 5 percent, of the proceeds remitted
pursuant to this part by a dealer, or the sums sufficient to provide the
maximum receipts specified herein, shall be transferred into the State
Infrastructure Trust Fund, which is created in the State Treasury.
"Proceeds" means all funds collected and received by the Department
of Revenue, including any interest and penalties. However, any
receipts of the trust fund, including these received pursuant to
ssr 20115(5) and 206.875(3 and interest earned, in excess of $140 $200
million in fiscal year 1987-1988- and $500 million thereafter, shall
revert to the General Revenue Fund.
(2) Subject to an appropriation each year by the Legislature, moneys
in the fund shall only be used for the purposes of:
(a) Acquiring the right-of-way for and constructing state highways
and bridges;
(b) Constructing public education capital facilities;
(c) Financing state projects for beach restoration or renourishment or
lake, river, or other water body restoration, including the restoration
of bays and estuaries;
(d) Constructing state correctional facilities;
(e) Constructing other infrastructure projects; or
(f) Issuing revenue bonds to finance state capital outlay projects
authorized by this section. Such bonds shall be payable solely from
legislative appropriations from the State Infrastructure Trust Fund
and shall not be a debt of the state, and the state shall not be liable
thereon. Neither the taxing power, the credit, nor the revenues of the
state shall be pledged to pay any obligation issued pursuant to this
subsection.
Section 22. Paragraph (d) of subsection (2) of section 215.32, Florida
Statutes, as amended by chapter 87-247, Laws of Florida, is amended
to read:
215.32 State funds; segregation.-
(2) The source and use of each of these funds shall be as follows:

34 JOURNAL OF THE HOUSI

Section 23. Subsection (1) of section 201.02, Florida Statutes, 1986
Supplement, as amended by chapter 87-6, Laws of Florida, is amended
to read:
201.02 Tax on deeds and other instruments relating to real property
or interests in real property.-
(1) On deeds, instruments, or writings whereby any lands, tene-
ments, or other real property, or any interest therein, shall be granted,
assigned, transferred, or otherwise conveyed to, or vested in, the
purchaser or any other person by his direction, on each $100 of the
consideration therefore the tax shall be 50 5 cents. When the full
amount of the consideration for the execution, assignment, transfer, or
conveyance is not shown in the face of such deed, instrument,
document, or writing, the tax shall be at the rate of 50 A5 cents for
each $100 or fractional part thereof of the consideration therefore.
Section 24. Section 201.15, Florida Statutes, as amended by chapters
87-6 and 87-96, Laws of Florida, is amended to read:
201.15 Distribution of taxes collected.-All taxes collected under the
provisions of this chapter shall be distributed as follows:
(1) Sixty-four and eight-tenths Sixty and eight tenths percent of the
total taxes collected under the provisions of this chapter shall be paid
into the State Treasury to the credit of the General Revenue Fund of
the state, to be used and expended for the purposes for which the
General Revenue Fund was created and exists by law.
(2) Twelve and five-tenths Eleven and eight tenths percent of the
total taxes collected under the provisions of this chapter shall be paid
into the State Treasury to the credit of the Land Acquisition Trust
Fund. Sums deposited in such fund pursuant to this subsection may be
used for any purpose for which funds deposited in the Land Acquisition
Trust Fund may lawfully be used and may be used to pay the cost of
the collection and enforcement of the tax levied by this chapter.
(3) Three and one-tenth percent of the total taxes collected under the
provisions of this chapter shall be paid into the State Treasury to the
credit of the Land Acquisition Trust Fund. Moneys deposited in the
trust fund pursuant to this section shall be used for the following
purposes:
(a) Sixty percent of the moneys shall be used to acquire coastal lands
or to pay debt service on bonds issued to acquire coastal lands; and
(b) Forty percent of the moneys shall be used to develop and manage
lands acquired with moneys from the Land Acquisition Trust Fund.
(4) Nine and eight-tenths Nine and two tenths percent of the total
taxes collected under the provisions of this chapter shall be paid into
the State Treasury to the credit of the Water Management Lands Trust
Fund. Sums deposited in that fund may be used for any purpose
authorized in s. 373.59 and may be used to pay the cost of the
collection and enforcement of the tax levied by this chapter.
) Six percent of the total taxes eoeleeted under the provisions of tis
chapter shall be paid inte the State Treasury to the credit of the State
Infrastructure Trust Fund.
(5)(6 Nine and eight-tenths Nine and two tenths percent of the total
taxes collected under the provisions of this chapter shall be paid into
the State Treasury to the credit of the Conservation and Recreation
Lands Trust Fund to carry out the purposes set forth in s. 253.023.
Section 25. Paragraph (b) of subsection (1) of section 206.87, Florida
Statutes, as created by chapter 87-6, Laws of Florida, is hereby repealed.
Section 26. Subsection (3) of section 206.875, Florida Statutes, as
created by chapter 87-6, Laws of Florida, is hereby repealed.
Section 27. (1) Section 207.026, Florida Statutes, as amended by
chapter 87-6, Laws of Florida, is amended to read:
207.026 Allocation of tax.-All moneys derived from the taxes and
fees imposed by this chapter shall be paid into the State Treasury by

the department for deposit in the Gas Tax Collection Trust Fund, from
which the following transfers shall be made: After withholding $50,000
from the proceeds therefrom, to be used as a revolving cash balance,
the funds for the purpose of conducting the study as set forth in s. 4 of
chapter 80-415, Laws of Florida, and the amount of funds necessary for

E OF REPRESENTATIVES

September 30, 1987

the administration and enforcement of this tax, all other moneys shall
be transferred in the same manner and for the same purpose as
provided in ss. 206.41, 206.45, 206.60, 206.605, 206.875, and 212.69.
(2) It is the intent of the Legislature that the amendment of
s. 207.026, Florida Statutes, by this act shall not affect the amendment
of said section by section 13 of chapter 87-198, Laws of Florida, which
is to take effect March 1, 1988.
Section 28. Subsection (3) of section 57.071, Florida Statutes, as
created by chapter 87-6, Laws of Florida, is hereby repealed.
Section 29. Subparagraph 3. of paragraph (d) of subsection (3) of
section 57.111, Florida Statutes, as created by chapter 87-6, Laws of
Florida, is hereby repealed.
Section 30. Paragraph (b) of subsection (1) of section 120.57, Florida
Statutes, 1986 Supplement, as amended by chapters 87-6 and 87-385,
Laws of Florida, and as amended and reenacted by chapter 87-54, Laws
of Florida, is amended to read:
120.57 Decisions which affect substantial interests.-The provisions
of this section apply in all proceedings in which the substantial
interests of a party are determined by an agency, unless such
proceedings are exempt pursuant to subsection (5). Unless waived by
all parties, subsection (1) applies whenever the proceeding involves a
disputed issue of material fact. Unless otherwise agreed, subsection (2)
applies in all other cases.
(1) FORMAL PROCEEDINGS.-
(b) In any case to which this subsection is applicable, the following
procedures apply:
1. A request for a hearing shall be granted or denied within 15 days
of receipt.
2. All parties shall be afforded an opportunity for a hearing after
reasonable notice of not less than 14 days; however, the 14-day notice
requirement may be waived with the consent of all parties. In a
preliminary hearing for the revocation of parole, no less than 7 days'
notice shall be given. In a hearing involving a student disciplinary
suspension or expulsion conducted by an educational unit, the 14-day
notice requirement may be waived by the agency head or the hearing
officer without the consent of the parties. The notice shall include:
a. A statement of the time, place, and nature of the hearing.
b. A statement of the legal authority and jurisdiction under which
the hearing is to be held.
c. A reference to the particular sections of the statutes and rules
involved.
d. Except for any hearing before an unemployment compensation
appeals referee, a short and plain statement of the matters asserted by
the agency and by all parties of record at the time notice is given. If
the agency or any party is unable to state the matters in sufficient
detail at the time initial notice is given, the notice may be limited to a
statement of the issues involved, and thereafter, upon timely written
application, a more definite and detailed statement shall be furnished
not less than 3 days prior to the date set for the hearing.
3. Except for any proceeding conducted as prescribed in s. 120.54(4),
or s. 120.56, or 120.575(f)(b), a petition or request for a hearing
under this section shall be filed with the agency. If the agency elects to
request a hearing officer from the division, it shall so notify the
division within 15 days of receipt of the petition or request. When the
Florida Land and Water Adjudicatory Commission receives a notice of
appeal pursuant to s. 380.07, the commission shall notify the division
within 60 days of receipt of the notice of appeal if the commission
elects to request the assignment of a hearing officer. On the request of
any agency, the division shall assign a hearing officer with due regard
to the expertise required for the particular matter. The referring
agency shall take no further action with respect to the formal
proceeding, except as a party litigant, as long as the division has
jurisdiction over the formal proceeding. Any party may request the
disqualification of the hearing officer by filing an affidavit with the

division prior to the taking of evidence at a hearing, stating the
grounds with particularity.

JOURNAL OF THE HOUSE

4. All parties shall have an opportunity to respond, to present
evidence and argument on all issues involved, to conduct cross-exami-
nation and submit rebuttal evidence, to submit proposed findings of
facts and orders, to file exceptions to any order or hearing officer's
recommended order, and to be represented by counsel. When appropri-
ate, the general public may be given an opportunity to present oral or
written communications. If the agency proposes to consider such
material, then all parties shall be given an opportunity to cross-exam-
ine or challenge or rebut it.
5. All pleadings, motions, or other papers filed in the proceeding
must be signed by a party, the party's attorney, or the party's qualified
representative. The signature of a party, a party's attorney, or a
party's qualified representative constitutes a certificate that he has
read the pleading, motion, or other paper and that, to the best of his
knowledge, information, and belief formed after reasonable inquiry, it
is not interposed for any improper purposes, such as to harass or to
cause unnecessary delay or for frivolous purpose or needless increase
in the cost of litigation. If a pleading, motion, or other paper is signed
in violation of these requirements, the hearing officer, upon motion or
his own initiative, shall impose upon the person who signed it, a
represented party, or both, an appropriate sanction, which may include
an order to pay the other party or parties the amount of reasonable
expenses incurred because of the filing of the pleading, motion, or
other paper, including a reasonable attorney's fee.
6. The record in a case governed by this subsection shall consist only
of:
a. All notices, pleadings, motions, and intermediate rulings;
b. Evidence received or considered;
c. A statement of matters officially recognized;
d. Questions and proffers of proof and objections and rulings thereon;
e. Proposed findings and exceptions;
f. Any decision, opinion, proposed or recommended order, or report
by the officer presiding at the hearing;
g. All staff memoranda or data submitted to the hearing officer
during the hearing or prior to its disposition, after notice of the
submission to all parties, except communications by advisory staff as
permitted under s. 120.66(1), if such communications are public
records;
h. All matters placed on the record after an ex parte communication
pursuant to s. 120.66(2); and
i. The official transcript.
7. The agency shall accurately and completely preserve all testimony
in the proceeding, and, on the request of any party, it shall make a full
or partial transcript available at no more than actual cost. In any
proceeding before a hearing officer initiated by a consumptive use
permit applicant pursuant to subparagraph 14., the applicant shall
bear the cost of accurately and completely preserving all testimony and
providing full or partial transcripts to the water management district.
At the request of any other party, full or partial transcripts shall be
provided at no more than cost.
8. Findings of fact shall be based exclusively on the evidence of
record and on matters officially recognized.
9. Except as provided in subparagraph 12., the hearing officer shall
complete and submit to the agency and all parties a recommended
order consisting of his findings of fact, conclusions of law, interpreta-
tion of administrative rules, and recommended penalty, if applicable,
and any other information required by law or agency rule to be
contained in the final order. The agency shall allow each party at least
10 days in which to submit written exceptions to the recommended
order.
10. The agency may adopt the recommended order as the final order
of the agency. The agency in its final order may reject or modify the
conclusions of law and interpretation of administrative rules in the
recommended order, but may not reject or modify the findings of fact

unless the agency first determines from a review of the complete
record, and states with particularity in the order, that the findings of

September 30, 1987

implementation of chapter 87-6, Laws of Florida, and this act shall not
be subject to a s. 120.54(4), Florida Statutes, rule challenge or a
s. 120.54(17), Florida Statutes, drawout proceeding, but, once adopted,
shall be subject to a s. 120.56, Florida Statutes, invalidity challenge.
Such rules shall be adopted by the Governor and Cabinet and shall

OF REPRESENTATIVES 35

fact were not based upon competent substantial evidence or that the
proceedings on which the findings were based did not comply with
essential requirements of law. The agency may accept the recom-
mended penalty in a recommended order, but may not reduce or
increase it without a review of the complete record and without stating
with particularity its reasons therefore in the order, by citing to the
record in justifying the action. When there is an appeal, the court in its
discretion may award reasonable attorney's fees and costs to the
prevailing party if the court finds that the appeal was frivolous,
meritless, or an abuse of the appellate process or that the agency
action which precipitated the appeal was a gross abuse of the agency's
discretion.
11. If the hearing officer assigned to a hearing becomes unavailable,
the division shall assign another hearing officer who shall use any
existing record and receive any additional evidence or argument, if
any, which the new hearing officer finds necessary.
12. A hearing officer who is a member of an agency head may
participate in the formulation of the final order of the agency, provided
he has completed all his duties as hearing officer.
13. In any application for a license or merger pursuant to title
XXXVIII which is referred by the agency to the division for hearing
pursuant to this section, the hearing officer shall complete and submit
to the agency and to all parties a written report consisting of findings
of fact and rulings on evidentiary matters. The agency shall allow each
party at least 10 days in which to submit written exceptions to the
report.
14. In any application for a consumptive use permit pursuant to part
II of chapter 373, the water management district on its own motion
may, or, at the request of the applicant for the permit, shall, refer the
matter to the division for the appointment of a hearing officer to
conduct a hearing under this section.
Section 31. Paragraph (b) of subsection (1) of section 120.575, Florida
Statutes, as created by chapter 87-6, Laws of Florida, and amended by
chapter 87-101, Laws of Florida, is hereby repealed.
Section 32. Subsection (5) of section 120.65, Florida Statutes, as
created by chapter 87-6, Laws of Florida, and amended by chapter
87-101, Laws of Florida, is hereby repealed.
Section 33. Section 213.30, Florida Statutes, as created by chapter
87-6, Laws of Florida, is hereby repealed.
Section 34. Any person who, before the effective date of this act, was
required by s. 212.13, Florida Statutes, as amended by chapters 87-6
and 87-101, Laws of Florida, to keep records relating to the sale or use
of services, shall continue to keep such records for a period of 3 years,
and such records shall be available for inspection in the same manner
as records kept pursuant to s. 212.13, Florida Statutes. The failure to
keep such records or to allow their inspection as required by this section
is subject to the same penalties provided in s. 212.13, Florida Statutes.
Section 35. The repeal by this act of any statute or part of a statute
does not affect the prosecution or continued prosecution of any cause of
action that accrued prior to the effective date of this act.
Section 36. Section 33 of chapter 87-6, Laws of Florida, as amended
by chapter 87-101, Laws of Florida, is amended to read:
Section 33. The Legislature hereby finds that the failure to promptly
implement the provisions of this act would present an immediate
threat to the welfare of the state because revenues needed for

operation of the state would not be collected. Therefore, the executive
director of the Department of Revenue is hereby authorized to adopt
emergency rules pursuant to s. 120.54(9), Florida Statutes, for pur-
poses of implementing this act. Notwithstanding any other provision of
law, such emergency rules shall remain effective through December 31,
1987 for 6 months from the date of adoption. Other rules of the
Department of Revenue related to and in furtherance of the orderly

JOURNAL OF THE HOUSE OF REPRESENTATIVES

become effective upon filing with the Department of State, notwith-
standing the provisions of s. 120.54(13), Florida Statutes.
Section 37. All services subject to tax under the provisions of chapter
87-6, Laws of Florida, as amended, which were sold or used in the state
prior to the effective date of this act remain taxable under the provisions
of said chapter, notwithstanding that payment for those services was
received by the dealer after the effective date of this act. This act shall
not be construed in any way to prohibit subsequent collection or
enforcement of taxes due under the provisions of said chapter prior to
the effective date of this act. To this end, the audit, collection, and
enforcement powers of the Department of Revenue shall be construed to
ensure that all taxes imposed by said chapter prior to the effective date of
this act are received by the state.
Section 38. (1) The department shall promulgate rules to ensure the
orderly implementation of this act.
(2) This section shall take effect upon this act becoming a law.
Section 39. The Legislature hereby finds that the failure to promptly
implement the provisions of this act would present an immediate threat
to the welfare of the state. The Administration Commission is hereby
authorized to adopt emergency rules pursuant to s. 120.54(9), Florida
Statutes, for purposes of implementing this act, which rules shall be
prepared by the Executive Director of the Department of Revenue.
Notwithstanding any other provision of law, such emergency rules shall
remain effective for 6 months from the date of adoption.
Section 40. Except as otherwise provided herein, this act shall take
effect January 1, 1988.
Rep. Patchett moved the adoption of the amendment.

THE SPEAKER PRO TEMPORE IN THE CHAIR

THE SPEAKER IN THE CHAIR

Rep. Carpenter suggested the absence of a quorum. A quorum of 117
members was present.
The question recurred on the adoption of the amendment, which
failed of adoption. The vote was:
Yeas-55

Explanations of Vote
Although I am voting in favor of the amendment to repeal the sales
tax on services, I believe it is imperative that the Legislature act on
the need for replacement revenue in order to insure that essential state
services are maintained.

Representative Charles T. Canady
District 44
I want to make my position clear in view of my vote today to support
repeal as an initial vote in a long process. My position has not changed
and in fact, I remain consistent in feeling that replacement revenue is
necessary and responsible. However, public confidence in the legisla-
tive process needed to be restored by repeal to begin a new slate for
new revenues.
I voted for repeal because I knew that this would necessitate the Bill
returning through the Appropriations process and it would give us
another opportunity to come up with alternative sources of needed
revenue. Further, there will be a conference bill and other votes to get
the revenues we need.
I recognize the tremendous needs for Florida's growth and the need
to fund that growth. Working closely with the education leaders in our
State, I recognize the needs for quality funding for education and the
need to pay adequate teacher salaries at both a public school and in
higher education levels.
I recognize the needs for strong funding of law enforcement,
infra-structure, and growth management and I know that it is not a
responsible position for the Legislature to fail to provide needed funds
to these growth related areas.
My vote today was to support REPEAL with consideration of
REPLACEMENT before we adjourn. It does not in any way reflect a
change in my position. I am firmly committed to REPEAL WITH
REPLACEMENT as the responsible position for the Florida House of
Representatives.
Representative John F. Cosgrove
District 119
On point of order by Rep. Bell, under Rule 8.8, that the bill now
affects appropriations, HB 26-B was committed to the Committee on
Appropriations, after engrossment.

Deadline For Prefiling Amendments
On motion by Rep. Gardner, without objection, 11:00 a.m. tomorrow
was set as the deadline for further prefiling of amendments to HB
26-B.
On motion by Rep. Carpenter, the rules were waived to revert to the
order of-

Messages from the Senate

The Honorable Jon Mills, Speaker
I am directed to inform the House of Representatives that the Senate
has passed, as amended, CS for CS for SB 5-B and requests the
concurrence of the House.

increasing the tax on transient rentals, the lease or rental of or license
in real property, admissions, and sales, storage, and use; providing for
retention of records relating to the sales tax on services for a certain
period; amending s. 240.533, F.S.; requiring an amount equal to lost
sales tax revenue to be used by certain educations institutions for
women's athletics; amending s. 288.385, F.S.; providing tax exemp-
tions for certain currency and barter exchanges; amending ss. 201.02,
201.15, 215.32, F.S.; repealing the increase in the documentary stamp
tax and providing for redistribution of tax proceeds; repealing
ss. 206.87(1)(b), 206.875(3), F.S.; repealing the increase in diesel fuel
taxes; amending s. 207.026, F.S.; providing for redistribution of taxes;
amending s. 212.235, F.S.; revising certain limitations on the State
Infrastructure Fund funding; providing for certain allocations from the
fund for certain purposes; providing for application of the additional
sales or use tax to certain utility services; providing transition rules
for the repeal of the services tax; providing for refund of additional
taxes paid by certain contractors; providing penalties; saving certain
actions from abatement; amending s. 218.61, F.S.; revising the local
government half-cent sales tax distribution formula; creating in the
Executive Office of the Governor a State Tax Study Committee to
study state and local government taxing structures and funding
sources; providing for membership, meetings, duties, and staff of the
committee; requiring reports; providing for per diem and travel
expenses; providing an appropriation; providing for certain positions
and funding to be placed in reserve; amending ss. 216.011, 216.046,
216.081, 216.167, 216.181, 216.292, 216.301, 235.41, F.S.; defining the
term "proviso"; providing for Governor's supplemental recommenda-
tions; providing for data on legislative expenses; providing for
Governor's recommendations; providing for appropriation committee
statements of intent; providing for transferability and transfer of
appropriations; providing for legislative capital outlay budget request;
repealing s. 216.031(7), F.S., as amended, relating to information
required in legislative budget requests; providing severability; provid-
ing an effective date.
-was read the first time by title and referred to the Committee on
Appropriations.

Announcements
Rep. Bell announced a meeting of the full Appropriations Committee
for 10:00 a.m. tomorrow in Morris Hall.
Rep. Reddick announced that the meeting of the Committee on
Youth scheduled for tomorrow was cancelled.

Rep. Jamerson announced that the meeting of the Committee on
Housing scheduled for tomorrow was cancelled.
Rep. Rochlin announced the birth of her 5th grandchild, Shayna
Ariana Liberman born September 10.

The following prayer was offered by Representative Lippman:
Reading from Proverbs, 29:18, "Where there is no vision, the people
perish: but he that keepeth the law, happy is he"; and Proverbs 29:23,
"A man's pride shall bring him low: but honour shall uphold the
humble in spirit". O Lord, we thank You for the day which You have
given us, an opportunity to serve the people of Florida. We ask that
You give Your blessings on all that we do here and that You give us
patience, wisdom and the knowledge to do what is best for the people.
We ask that You forgive us if we fail on our way. Strengthen us with
knowledge at the most important task You have given us on this earth,
to serve one another both friend and family. May we say Amen.
The following Members were recorded present:

Excused: Representative Troxler; Representative Abrams, for busi-
ness in Miami; Representative Dunbar, attending a business meeting
in Alaska.
A quorum was present.

Pledge

The Members pledged allegiance to the Flag.

The Journal

The Journal of September 30 was approved as corrected.

Introduction and Reference

By Representatives Mackenzie, Crady, Silver, Patchett, Gordon,
Sample, B. L. Johnson, Bainter, Kelly, King, Tobin-
HB 16-B-A bill to be entitled An act relating to voter information;
amending s. 97.021, F.S.; providing definitions; amending s. 98.211,
F.S.; revising procedures and requirements for copying voter registra-
tion information; amending s. 101.62, F.S.; revising provisions relating
to requests for information on absentee ballots; providing an effective
date.
Rep. Crady moved that HB 16-B be admitted for introduction, the
Speaker having ruled the measure was outside the purview of the Call,
which was agreed to by the required Constitutional two-thirds vote,
and the bill was read the first time by title. On motion by Rep. Crady,
the rules were waived by two-thirds vote and HB 16-B was read the
second time by title.
Representative Crady offered the following amendment:
Amendment 1-On page 1, line 19, insert after "ss.": 97.063,
Rep. Crady moved the adoption of the amendment, which was
adopted.
Representative Crady offered the following amendment:
Amendment 2-On page 5, line 1, insert after "committees": or
registered committees of continuous existence
Rep. Crady moved the adoption of the amendment, which was
adopted.
Representative Crady offered the following amendment:
Amendment 3-On page 2, lines 24-30; and on page 3, lines 1-2,
strike all of said lines and insert:
(b) Notwithstanding the provisions of paragraph (a), voter information
concerning electors who voted in the most recent election shall be
available within 15 days of the election, or as soon as practicable,
whichever occurs first. After the information becomes available, the
supervisor shall provide the information within 3 days of an authorized
request or allow the person or entity making the request, or an agent
thereof, to extract or copy the requested voter information as soon as
practicable.
Rep. Crady moved the adoption of the amendment, which was
adopted without objection.
On motion by Rep. Crady, the rules were waived by two-thirds vote
and the bill was read the third time by title. On passage, the vote was:
38

Votes after roll call:
Yeas-Figg, Wallace
So the bill passed, as amended, and was immediately certified to the
Senate after engrossment.

Communications

The following Proclamation was read:
PROCLAMATION
State of Florida
Executive Department
Tallahassee
(Third Amendment to Proclamation dated September 3, 1987)
TO THE HONORABLE MEMBERS OF THE FLORIDA SENATE
AND THE HOUSE OF REPRESENTATIVES
WHEREAS, on the 3rd day of September, 1987, a Proclamation of
the Governor was issued convening a Special Session of the Florida
Legislature for the purpose of considering appropriate action on the
general tax on the sale or use of services consumed or enjoyed in the
state, commencing at 9:00 a.m. on Monday, the 21st day of September,
1987, and ending at 12:00 noon on Wednesday, the 23rd day of
September, 1987; and
WHEREAS, on the 22nd day of September, 1987, a Proclamation of
the Governor was issued extending the Special Session through 12:00
noon on Friday, the 2nd day of October, 1987, and adding additional
matters for the Legislature's consideration to the call of the Special
Session; and
WHEREAS, on the 28th day of September, 1987, a Proclamation of
the Governor was issued adding additional matters for the Legisla-
ture's consideration to the call of the Special Session; and
WHEREAS, it is in the best interest of the citizens of the State to
extend the length of the Special Session in order to permit full and
adequate consideration of all business within the purview of the
Proclamation of the Governor dated September 3, 1987, as amended.
NOW, THEREFORE, I, BOB MARTINEZ, Governor of the State of
Florida, by virtue of the power and authority vested in me by Article
III, Section 3(c)(1), Florida Constitution, do hereby proclaim as follows:

Section one (1) of the Proclamation of the Governor dated September
3, 1987, as amended, is hereby amended to read:
1. That the Special Session of the Legislature of the State of Florida
is hereby extended through 12:00 noon on Friday, the 9th day of
October, 1987.
Except as amended by this Proclamation, the Proclamation of the
Governor dated September 3, 1987, as amended, is ratified and
confirmed.
E IN TESTIMONY WHEREOF, I
have hereunto set my hand and
caused the Great Seal of the State
of Florida to be affixed to this
proclamation at the Capitol, this
1st day of October, 1987.
BOB MARTINEZ
Governor
ATTEST:
JIM SMITH
Secretary of State

Messages from the Senate

The Honorable Jon Mills, Speaker
I am directed to inform the House of Representatives that the Senate
has admitted for introduction and consideration by the required
Constitutional two-thirds vote and passed SB 24-B and requests the
concurrence of the House.
Joe Brown, Secretary

By Senator Hollingsworth and others-
SB 24-B-A bill to be entitled An act relating to the state
retirement system; amending s. 121.101, F.S.; revising the formula for
cost-of-living adjustments to monthly benefits; deleting obsolete lan-
guage pertaining to certain supplementary cost-of-living adjustments;
providing for retroactivity; providing an effective date.
Rep. Lippman moved that SB 24-B be admitted for introduction, the
Speaker having ruled the measure was outside the purview of the Call,
which was agreed to by the required Constitutional two-thirds vote,
and the bill was read the first time by title. On motions by Rep.
Lippman, the rules were waived by two-thirds vote and SB 24-B was
read the second time by title and the third time by title. On passage,
the vote was:
Yeas-112

JOURNAL OF THE HOUSE OF REPRESENTATIVES

Souto
Starks
Stone
Thomas
Titone

Tobiassen
Tobin
Trammell
Webster
Wetherell

Woodruff
Young

Nays-None
Votes after roll call:
Yeas-Wallace, Figg
So the bill passed and was immediately certified to the Senate.
The Honorable Jon Mills, Speaker
I am directed to inform the House of Representatives that the Senate
has adopted as amended SCR 28-B and requests the concurrence of the
House.
Joe Brown, Secretary
By Senator Barron-
SCR 28-B-A concurrent resolution providing for adjournment of
both houses of the Legislature for more than 72 consecutive hours.
Be It Resolved by the Senate of the State of Florida, the House of
Representatives Concurring:
The Florida Senate and the Florida House of Representatives shall
stand adjourned from 11:59 p.m., Friday, October 2, 1987, until 12:00
Noon, Monday, October 5, 1987, or at the earlier call of the respective
presiding officers.
-was read the first time by title. On motions by Rep. Carpenter, the
rules were waived and the concurrent resolution was read the second
time in full, adopted and under the rule immediately certified to the
Senate.
The Honorable Jon Mills, Speaker
I am directed to inform the House of Representatives that the Senate
has admitted for introduction and consideration by the required
Constitutional two-thirds vote and passed as amended SB 25-B and
requests the concurrence of the House.
Joe Brown, Secretary

By Senator Myers and others-
SB 25-B-A bill to be entitled An act relating to family foster
homes; amending s. 409.175, F.S.; requiring the Division of Risk
Management of the Department of Insurance to provide liability
insurance to certain individuals who own or operate family foster
homes; providing appropriations; providing an effective date.
Rep. Tobin moved that SB 25-B be admitted for introduction, the
Speaker having ruled the measure was outside the purview of the Call,
which was agreed to by the required Constitutional two-thirds vote,
and the bill was read the first time by title. On motions by Rep. Tobin,
the rules were waived by two-thirds vote and SB 25-B was read the
second time by title and the third time by title. On passage, the vote
was:
Yeas-113

Nays-None
So the bill passed and was immediately certified to the Senate.

The Honorable Jon Mills, Speaker
I am directed to inform the House of Representatives that the Senate
has admitted for introduction and consideration by the required
Constitutional two-thirds vote and passed SB 27-B and requests the
concurrence of the House.
Joe Brown, Secretary

By Senators Crawford and Beard-
SB 27-B-A bill to be entitled An act relating to traffic control;
amending s. 316.302, F.S.; providing exceptions to the amount of time
certain drivers of agricultural vehicles may be on duty; providing that
the amendments to s. 316.302, F.S., shall be null and void under
certain circumstances; providing for the effect of such a contingency;
providing an effective date.
Rep. Burnsed moved that SB 27-B be admitted for introduction, the
Speaker having ruled the measure was outside the purview of the Call,
which was agreed to by the required Constitutional two-thirds vote,
and the bill was read the first time by title. On motions by Rep.
Burnsed, the rules were waived by two-thirds vote and SB 27-B was
read the second time by title and the third time by title. On passage,
the vote was:
Yeas-115

Recessed
On motion by Rep. Carpenter, the House stood in informal recess at
4:40 p.m., to reconvene upon the call of the Speaker.

Reconvened
The House was called to order by the Speaker at 6:46 p.m. A quorum
was present.

Special and Continuing Orders

HB 26-B--A bill to be entitled An act relating to taxation; amending
s. 212.059, F.S., and repealing subsection (6) thereof; revising provi-
sions which impose the tax on sales, use and other transactions on the
sale of services; revising provisions relating to sale outside this state;
removing provisions that require applicants for specified permits to
attest that applicable use taxes have been paid; repealing
s. 212.0592(6)-(51), F.S., which provide exemptions from the tax on
services; amending s. 212.0593, F.S., relating to administration of the
exemption for services sold in this state for use outside this state;
revising provisions relating to use of exempt purchase permits and
affidavits; amending s. 212.0594, F.S.; revising special provisions
relating to construction; amending s. 212.0598, F.S.; revising special
provisions relating to air carriers; amending s. 212.02, F.S.; revising
the definitions of "retail sale," "sales price," "service," and "SIC";
amending s. 212.031, F.S.; removing an exemption for lease or rental
of property used for qualified production services; amending s. 212.055,
F.S.; revising provisions relating to the local government infrastruc-
ture surtax; amending s. 212.06, F.S.; revising an exemption for
fabrication labor associated with videotapes or motion pictures;
defining "dealer" with respect to certain real estate commissions;
amending s. 212.08, F.S.; providing an exemption for aircraft modifica-
tion services; repealing s. 31(3), (4) and (5) of chapter 87-6, Laws of
Florida, relating to an exemption for certain improvements to real
property; removing provisions relating to a required application, a
time limitation, and a report to the Legislature by the Department of
Revenue; amending s. 33 of chapter 87-6, Laws of Florida; revising
provisions relating to emergency rules; amending s. 36 of chapter 87-6,
Laws of Florida; revising provisions relating to waiver of penalties;
repealing s. 47 of chapter 87-6, Laws of Florida, relating to a study of
service transactions by the Department of Revenue; amending s. 28 of
"chapter 87-101, Laws of Florida; authorizing certain positions for the
Division of Administrative Hearings; amending s. 212.04, F.S.; creat-
ing an exemption for dues and admission charges imposed by nonprofit
community or recreational facilities; requiring the Department of
"Revenue to notify certain registered dealers of the repeal of the tax on
certain services; requiring the department to refund dealer registra-
tion fees for certain dealers no longer required to collect tax; providing
for a straw ballot; providing effective dates.
-was taken up, having been read the second time on September 30,
amended, and, under Rule 8.8, committed to the Committee on
Appropriations after engrossment.

Representatives Simon, Tobin, Mackey, Carpenter, Hargrett, Mac-
kenzie, Goode, Brown, Clements, Young, Reddick, and Jamerson
offered the following amendment:
Amendment 1-On page 3, line 1, insert:
PART I
Section 1. Subsections (1), (3), and (6) of section 212.03, Florida
Statutes, are amended to read:
212.03 Transient rentals tax; rate, procedure, enforcement, exemp-
tions.-
(1) It is hereby declared to be the legislative intent that every person
is exercising a taxable privilege who engages in the business of
renting, leasing, or letting any living quarters or sleeping or

housekeeping accommodations in, from, or a part of, or in connection
with any hotel, apartment house, roominghouse, or tourist or trailer
camp. For the exercise of such privilege, a tax is hereby levied in an

amount equal to 6 5 percent of and on the total rental charged for such
living quarters or sleeping or housekeeping accommodations by the
person charging or collecting the rental. Such tax shall apply to hotels,
apartment houses, roominghouses, or tourist or trailer camps whether
or not there is in connection with any of the same any dining rooms,
cafes, or other places where meals or lunches are sold or served to
guests.
(3) When rentals are received by way of property, goods, wares,
merchandise, services, or other things of value, the tax shall be at the
rate of 6 5 percent of the value of the property, goods, wares,
merchandise, services, or other things of value.
(6) It is the legislative intent that every person is engaging in a
taxable privilege who leases or rents parking or storage spaces for
motor vehicles in parking lots or garages, who leases or rents docking
or storage spaces for boats in boat docks or marinas, or who leases or
rents tie-down or storage space for aircraft at airports. For the exercise
of this privilege, a tax is hereby levied at the rate of 6 5 percent on the
total rental charged.
Section 2. Paragraphs (c) and (d) of subsection (1) of section 212.031,
Florida Statutes, 1986 Supplement, are amended to read:
212.031 Lease or rental of or license in real property.-

(1)
(c) For the exercise of such privilege, a tax is levied in an amount
equal to 6 5 percent of and on the total rent or license fee charged for
such real property by the person charging or collecting the rental or
license fee.
(d) When the rental or license fee of any such real property is paid by
way of property, goods, wares, merchandise, services, or other thing of
value, the tax shall be at the rate of 6 & percent of the value of the
property, goods, wares, merchandise, services, or other thing of value.
Section 3. Paragraph (b) of subsection (1) of section 212.04, Florida
Statutes, 1986 Supplement, is amended to read:
212.04 Admissions tax; rate, procedure, enforcement.-
(1)
(b) For the exercise of such privilege, a tax is levied at the rate of 6 5
percent of sales price, or the actual value received from such
admissions, which 6 5 percent shall be added to and collected with all
such admissions from the purchaser thereof; and such tax shall be paid
for the exercise of the privilege as defined in the preceding paragraph.
Each ticket shall show on its face the actual sales price of admission,
and the tax shall be computed and collected on the basis of each such
admission price. The sale price or actual value of admission shall, for
the purpose of this chapter, be that price remaining after deduction of
federal taxes, if any, imposed upon such admission; and the rate of tax
on each admission shall be according to the brackets established by
s. 212.12(9)40).
Section 4. (1) Subsection (1) of section 212.05, Florida Statutes, 1986
Supplement, as amended by section 10 of chapter 87-6, chapter 87-99,
section 12 of chapter 87-101, and chapter 87-402, Laws of Florida, is
amended to read:
212.05 Sales, storage, use tax.-It is hereby declared to be the
legislative intent that every person is exercising a taxable privilege
who engages in the business of selling tangible personal property at
retail in this state, including the business of making mail order sales,
or who rents or furnishes any of the things or services taxable under
this section, or who stores for use or consumption in this state any item
or article of tangible personal property as defined herein and who
leases or rents such property within the state.
(1) For the exercise of such privilege, a tax is levied on each taxable
transaction or incident, which tax is due and payable as follows:
(a)l.a. At the rate of 6 5 percent of the sales price of each item or
article of tangible personal property when sold at retail in this state,

computed on each taxable sale for the purpose of remitting the amount
of tax due the state, and including each and every retail sale.

41

October 1, 1987

42

b. Each occasional or isolated sale of an aircraft, boat, mobile home,
or motor vehicle of a class or type which is required to be registered,
licensed, titled, or documented in this state or by the United States
Government shall be subject to tax at the rate provided in this
paragraph. The department shall, by rule, adopt the NADA Official
Used Car Guide as the reference price list for any used motor vehicle
which is required to be licensed pursuant to s. 320.08(1), (2), (3)(a), (b),
(c), or (f), or (9). If any party to an occasional or isolated sale of such a
vehicle reports to the tax collector a sales price which is less than 80
percent of the average loan price for the specified model and year of
such vehicle as listed in the most recent reference price list, the tax
levied under this paragraph shall be computed by the department on
such average loan price unless the parties to the sale have provided to
the tax collector an affidavit signed by each party, or other substantial
proof, stating the actual sales price. Any party to such sale who reports
a sales price less than the actual sales price is guilty of a misdemeanor
of the second degree, punishable as provided in s. 775.083. The
department shall collect or attempt to collect from such party any
delinquent sales taxes. In addition, such party shall pay any tax due
and any penalty and interest assessed, plus a penalty equal to twice
the amount of the additional tax owed. Notwithstanding any other
provision of law, the Department of Revenue may waive or compromise
any penalty imposed after July 1, 1985, pursuant to this subparagraph.
2. This paragraph does not apply to the sale of a boat or airplane by
or through a registered dealer under this chapter to a purchaser who
removes such boat or airplane from this state within 10 days after the
date of purchase oi, when the boat or airplane is repaired or altered,
within 10 days after completion of such repairs or alterations. In no
event shall the boat or airplane remain in this state more than 90 days
after the date of purchase. This exemption shall not be allowed unless
the seller:
a. Obtains from the purchaser within 90 days from the date of sale
written proof that the purchaser licensed, registered, or documented
the boat or airplane outside the state;
b. Requires the purchaser to sign an affidavit that he has read the
provisions of this section; and
c. Makes the affidavit a part of his permanent record.
In the event the purchaser fails to remove the boat or airplane from
this state within 10 days after purchase or, when the boat or airplane
is repaired or altered, within 10 days after completion of such repairs
or alterations, or permits the boat or airplane to return to this state
within 6 months from the date of departure, the purchaser shall be
liable for use tax on the cost price of the boat or airplane and, in
addition thereto, payment of a penalty to the Department of Revenue
equal to the tax payable. This penalty shall be in lieu of the penalty
imposed by s. 212.12(2) and is mandatory and shall not be waived by
the department.
(b) At the rate of 6 5 percent of the cost price of each item or article
of tangible personal property when the same is not sold but is used,
consumed, distributed, or stored for use or consumption in this state.
(c) At the rate of 6 5 percent of the gross proceeds derived from the
lease or rental of tangible personal property, as defined herein, except
the lease or rental of a commercial motor vehicle as defined in
s. 316.003(67)(a) to one lessee or rentee for a period of not less than 12
months when tax was paid on the acquisition of such vehicle by the
lessor, when the lease or rental of such property is an established
business or part of an established business or the same is incidental or
germane to such business.
(d) At the rate of 6 5 percent of the lease or rental price paid by a
lessee or rentee, or contracted or agreed to be paid by a lessee or
rentee, to the owner of the tangible personal property.
(e)l. At the rate of 6 > percent on charges for all telegraph messages
and long distance telephone calls beginning and terminating in this
state; on charges for telecommunication service as defined in
s. 203.012 and for those services described in s. 203.012(2)(a); on
recurring charges to regular subscribers for wired television service; on

all charges for the installation of telecommunication, wired television,
and telegraphic equipment; and on all charges for electrical power or

October 1, 1987

energy. For purposes of this part, the term "telecommunication
service" does not include local service provided through a pay
telephone. The provisions of s. 212.17(3), regarding credit for tax paid
on charges subsequently found to be worthless, shall be equally
applicable to any tax paid under the provisions of this section on
charges for telecommunication or telegraph services or electric power
subsequently found to be uncollectible. The word "charges" in this
paragraph does not include any excise or similar tax levied by the
Federal Government, any political subdivision of the state, or any
municipality upon the purchase or sale of telecommunication, wired
television, or telegraph service or electric power, which tax is collected
by the seller from the purchaser.
2. Telegraph messages and telecommunication services which origi-
nate or terminate in this state, other than interstate private communi-
cation services, and are billed to a customer, telephone number, or
device located within this state are taxable under this paragraph.
Interstate private communication services are taxable under this
paragraph as follows:
a. One hundred percent of the charge imposed at each channel
termination point within this state;
b. One hundred percent of the charge imposed for the total channel
mileage between each channel termination point within this state; and
c. The portion of the interstate interoffice channel mileage charge as
determined by multiplying said charge times a fraction, the numerator
of which is the air miles between the last channel termination point in
this state and the vertical and horizontal coordinates, 7856 and 1756,
respectively, and the denominator of which is the air miles between
the last channel termination point in this state and the first channel
termination point outside this state. The denominator of this fraction
shall be adjusted, if necessary, by adding the numerator of said
fraction to similarly determined air miles in the state in which the
other channel termination point is located, so that the summation of
the apportionment factor for this state and the apportionment factor
for the other state is not greater than one, to ensure that no more than
100 percent of the interstate interoffice channel mileage charge can be
taxed by this state and another state.
3. The tax imposed pursuant to this paragraph shall not exceed
$50,000 per calendar year on charges to any person for interstate
telecommunications services defined in s. 203.012(4) and (7)(b), if the
majority of such services used by such person are for communications
originating outside of this state and terminating in this state. This
exemption shall only be granted to holders of a direct pay permit
issued pursuant to this subparagraph. No refunds shall be given for
taxes paid prior to receiving a direct pay permit. Upon application, the
department may issue a direct pay permit to the purchaser of
telecommunications services authorizing such purchaser to pay tax on
such services directly to the department. Any vendor furnishing
telecommunications services to the holder of a valid direct pay permit
shall be relieved of the obligation to collect and remit the tax on such
service. Tax payments and returns pursuant to a direct pay permit
shall be monthly. For purposes of this subparagraph, the term "person"
shall be limited to a single legal entity and shall not be construed as
meaning a group or combination of affiliated entities or entities
controlled by one person or group of persons. For purposes of this
subparagraph, for calendar year 1986, the term "calendar year" means
the last 6 months of 1986.
(f) At the rate of 6 i percent on the sale, rental, use, consumption, or
storage for use in this state of machines and equipment and parts and
accessories therefore used in manufacturing, processing, compounding,
producing, mining, or quarrying personal property for sale or to be
used in furnishing communications, transportation, or public utility
services.
(g) At the rate of 5 percent of the price, as determined pursuant to
part II, of each gallon of motor fuel or special fuel taxable pursuant to
that part, except that motor fuel and special fuel expressly taxable
under this part shall be taxed as provided in paragraphs (a) and (b).
(h) Any person who purchases, installs, rents, or leases a telephone

system or telecommunication system for his own use to provide himself
with telephone service or telecommunication service which is a

JOURNAL OF THE HOUSE OF REPRESENTATIVES

JOURNAL OF THE HOUSE

substitute for any telephone company switched service or a substitute
for any dedicated facility by which a telephone company provides a
communication path is exercising a taxable privilege and shall register
with the Department of Revenue and pay into the State Treasury a
yearly amount equal to 6 5 percent of the actual cost of operating such
system, notwithstanding the provisions of s. 212.081(3)(b). "Actual
cost" includes, but is not limited to, depreciation, interest, mainte-
nance, repair, and other expenses directly attributable to the operation
of such system. For purposes of this paragraph, the depreciation
expense to be included in actual cost shall be the depreciation expense
claimed for federal income tax purposes. The total amount of any
payment required by a lease or rental contract or agreement shall be
included within the actual cost. The provisions of this paragraph do not
apply to the use by any local telephone company or any telecommuni-
cation carrier of its own telephone system or telecommunication
system to conduct a telecommunication service for hire. If a system
described in this paragraph is located in more than one state, the
actual cost of such system for purposes of this paragraph shall be the
actual cost of the system's equipment located in Florida.
(i) At the rate of 6 5 percent on the retail price of newspapers and
magazines sold or used in Florida.
(j) At the rate of 6 percent on charges for cleaning, laundry, and
garment services as defined in SIC Group Number 721, except
coin-operated laundries and coin-operated dry cleaning establishments
enumerated in SIC Industry Number 7215.
(2) Effective July 1, 1988, paragraph (a) of subsection (1) of section
212.05, Florida Statutes, 1986 Supplement, as further amended by
section 83 of chapter 87-6 and section 52 of chapter 87-101, Laws of
Florida, is amended to read:
212.05 Sales, storage, use tax.-It is hereby declared to be the
legislative intent that every person is exercising a taxable privilege
who engages in the business of selling tangible personal property at
retail in this state, including the business of making mail order sales,
or who rents or furnishes any of the things or services taxable under
this section, or who stores for use or consumption in this state any item
or article of tangible personal property as defined herein and who
leases or rents such property within the state.
(1) For the exercise of such privilege, a tax is levied on each taxable
transaction or incident, which tax is due and payable as follows:
(a)l.a. At the rate of 6 5 percent of the sales price of each item or
article of tangible personal property when sold at retail in this state,
computed on each taxable sale for the purpose of remitting the amount
of tax due the state, and including each and every retail sale.
b. Each occasional or isolated sale of an aircraft, boat, mobile home,
or motor vehicle of a class or type which is required to be registered,
licensed, titled, or documented in this state or by the United States
Government shall be subject to tax at the rate provided in this
paragraph. The department shall, by rule, adopt the NADA Official
Used Car Guide as the reference price list for any used motor vehicle
which is required to be licensed pursuant to s. 320.08(1), (2), (3)(a), (b),
(c), or (f), or (9). If any party to an occasional or isolated sale of such a
vehicle reports to the tax collector a sales price which is less than 80
percent of the average loan price for the specified model and year of
such vehicle as listed in the most recent reference price list, the tax
levied under this paragraph shall be computed by the department on
such average loan price unless the parties to the sale have provided to
the tax collector an affidavit signed by each party, or other substantial
proof, stating the actual sales price. Any party to such sale who reports
a sales price less than the actual sales price is guilty of a misdemeanor
of the first degree, punishable as provided in s. 775.082, s. 775.083, or
s. 775.084. The department shall collect or attempt to collect from such
party any delinquent sales taxes. In addition, such party shall pay any
tax due and any penalty and interest assessed, plus a penalty equal to
twice the amount of the additional tax owed. Notwithstanding any
other provision of law, the Department of Revenue may waive or
compromise any penalty imposed after July 1, 1985, pursuant to this
subparagraph.

2. This paragraph does not apply to the sale of a boat or airplane by
or through a registered dealer under this chapter to a purchaser who

October 1, 1987

referendum on the surtax. If the governing bodies of the municipalities
representing a majority of the county's population adopt uniform
resolutions establishing the rate of the surtax and calling for a
referendum on the surtax, the levy of the surtax shall be placed on the
ballot and shall take effect if approved by a majority of the electors of

OF REPRESENTATIVES 43

removes such boat or airplane from this state within 10 days after the
date of purchase or, when the boat or airplane is repaired or altered,
within 10 days after completion of such repairs or alterations. In no
event shall the boat or airplane remain in this state more than 90 days
after the date of purchase. This exemption shall not be allowed unless
the seller:
a. Obtains from the purchaser within 90 days from the date of sale
written proof that the purchaser licensed, registered, or documented
the boat or airplane outside the state;
b. Requires the purchaser to sign an affidavit that he has read the
provisions of this section; and
c. Makes the affidavit a part of his permanent record.
In the event the purchaser fails to remove the boat or airplane from
this state within 10 days after purchase or, when the boat or airplane
is repaired or altered, within 10 days after completion of such repairs
or alterations, or permits the boat or airplane to return to this state
within 6 months from the date of departure, the purchaser shall be
liable for use tax on the cost price of the boat or airplane and, in
addition thereto, payment of a penalty to the Department of Revenue
equal to the tax payable. This penalty shall be in lieu of the penalty
imposed by s. 212.12(2) and is mandatory and shall not be waived by
the department.
Section 5. Paragraph (b) of subsection (1) and paragraph (a) of
subsection (3) of section 212.055, Florida Statutes, as amended by
chapters 87-99, 87-100, and 87-239, Laws of Florida, are amended to
read:
212.055 Discretionary sales surtaxes; legislative intent; authoriza-
tion and use of proceeds.-It is the legislative intent that any
authorization for imposition of a discretionary sales surtax shall be
published in the Florida Statutes as a subsection of this section,
irrespective of the duration of the levy. Each enactment shall specify
the types of counties authorized to levy; the rate or rates which may be
imposed; the maximum length of time the surtax may be imposed, if
any; the procedure which must be followed to secure voter approval, if
required; the purpose for which the proceeds may be expended; and
such other requirements as the Legislature may provide. Taxable
transactions and administrative procedures shall be as provided in
s. 212.054.
(1) CHARTER COUNTY TRANSIT SYSTEM SURTAX.
(a) Each charter county which adopted a charter prior to June 1,
1976, may levy a discretionary sales surtax, subject to approval by a
majority vote of the electorate of the county.
(b)l. The rate shall be one-sixth one fifth (20 percent) of any amount
of tax imposed by and paid to the state pursuant to this part, except
this section and s. 212.054.
2. Notwithstanding subparagraph 1., for any county the government
of which is consolidated with that of one or more municipalities, upon
the retirement of any bonds which were issued for the construction of
roads and bridges and which were outstanding on the effective date of
this act, the rate shall be one-twelfth one tenth (40 percent) of any
amount of tax imposed by and paid to the state pursuant to this part,
except this section and s. 212.054.
(3) LOCAL GOVERNMENT INFRASTRUCTURE SURTAX.-
(a) The governing authority in each county may levy, for a period of
15 years from the date of levy, a discretionary sales surtax of up to
one-sixth 20 percent of any tax paid to the state pursuant to this part,
except this section, s. 212.054 and s. 212.0305. Such governing author-
ity may levy such surtax in an amount equal to one-twenty-fourth,
one-twelfth, one-eighth, or one-sixth 10 45 er 20 percent of said state
tax. The levy of the surtax shall be pursuant to ordinance enacted by a
majority of the members of the county governing authority and
approved by a majority of the electors of the county voting in a

JOURNAL OF THE HOUSE OF REPRESENTATIVES

the county voting in the referendum on the surtax. No referendum
election called pursuant to the provisions of this subsection shall be
held between March 9 and December 31, 1988.
Section 6. Paragraph (a) of subsection (1) of section 212.06, Florida
Statutes, 1986 Supplement, is amended to read:
212.06 Sales, storage, use tax; collectible from dealers; "dealer"
defined; dealers to collect from purchasers; legislative intent as to
scope of tax.-
(1)(a) The aforesaid tax at the rate of 6 5 percent of the retail sales
price as of the moment of sale, 6 5 percent of the cost price as of the
moment of purchase, or 6 5 percent of the cost price as of the moment
of commingling with the general mass of property in this state, as the
case may be, shall be collectible from all dealers as herein defined on
the sale at retail, the use, the consumption, the distribution, and the
storage for use or consumption in this state of tangible personal
property or services taxable under this part. The full amount of the tax
on a credit sale, installment sale, or sale made on any kind of deferred
payment plan shall be due at the moment of the transaction in the
same manner as on a cash sale.
Section 7. Subsection (3) and paragraph (c) of subsection (11) of
section 212.08, Florida Statutes, 1986 Supplement, are amended to
read:
212.08 Sales, rental, use, consumption, distribution, and storage tax;
specified exemptions.-The sale at retail, the rental, the use, the
consumption, the distribution, and the storage to be used or consumed
in this state of the following are hereby specifically exempt from the
tax imposed by part I of this chapter.
(3) EXEMPTIONS, PARTIAL; CERTAIN FARM EQUIPMENT.-
There shall be taxable at the rate of 3 percent the sale, use,
consumption, or storage for use in this state of self-propelled or
power-drawn farm equipment used exclusively by a farmer on a farm
owned, leased, or sharecropped by him in plowing, planting, cultivat-
ing, or harvesting crops. The rental of self-propelled or power-drawn
farm equipment shall be taxed at the rate of 6 & percent.
(11) PARTIAL EXEMPTION; FLYABLE AIRCRAFT.-
(c) The maximum tax collectible under this subsection may not
exceed 6 5 percent of the sales price of such aircraft. No Florida tax
may be imposed on the sale of such aircraft if the state in which the
aircraft will be domiciled does not allow Florida sales or use tax to be
credited against its sales or use tax. Furthermore, no tax may be
imposed on the sale of such aircraft if the state in which the aircraft
will be domiciled has enacted a sales and use tax exemption for flyable
aircraft or if the aircraft will be domiciled outside the United States.
Section 8. Subsections (9) and (10) of section 212.12, Florida
Statutes, 1986 Supplement, as amended by chapters 87-6 and 87-101,
Laws of Florida, are amended to read:
212.12 Dealer's credit for collecting tax; penalties for noncompliance;
powers of Department of Revenue in dealing with delinquents;
brackets applicable to taxable transactions; records required.-
(9) Taxes imposed by this chapter upon the privilege of the use,
consumption, storage for consumption, or sale of tangible personal
property, admissions, license fees, rentals, and communication serv-
ices, and upon the sale or use of services as herein taxed shall be
collected upon the basis of an addition of the tax imposed by this
chapter to the total price of such admissions, license fees, rentals,
communication or other services, or sale price of such article or articles
that are purchased, sold, or leased at any one time by or to a customer
or buyer; and the dealer, or-person charged herein, is required to pay a
privilege tax in the amount of the tax imposed by this chapter on the
total of his gross sales of tangible personal property, admissions,
license fees, rentals, and communication services or to collect a tax
upon the sale or use of services, and such person or dealer shall add the
tax imposed by this chapter to the price, license fee, rental, or
admissions, and communication or other services and collect the total
sum from the purchaser, admittee, licensee, lessee, or consumer.

Notwithstanding the rate of taxes imposed upon the privilege of sales,
admissions, license fees, rentals, and communication services, or upon

the sale or use of services, the following brackets shall be applicable to
all transactions taxable at the rate of 6 5 percent:
(a) On single sales of less than 8 10 cents, no tax shall be added.
(b) On single sales in amounts from 8 10 cents to 16 20 cents, both
inclusive, 1 cent shall be added for taxes.
(c) On sales in amounts from 17 21 cents to 33 40 cents, both
inclusive, 2 cents shall be added for taxes.
(d) On sales in amounts from 34 41 cents to 50 60 cents, both
inclusive, 3 cents shall be added for taxes.
(e) On sales in amounts from 51 61 cents to 66 80 cents, both
inclusive, 4 cents shall be added for taxes.
(f) On sales in amounts from 67 81 cents to 83 cents $1, both
inclusive, 5 cents shall be added for taxes.
(g) On sales in amounts from 84 cents to $1, both inclusive, 6 cents
shall be added for taxes.
(h)(g) On sales in amounts of more than $1, 6 5 percent shall be
charged upon each dollar of price, plus the appropriate bracket charge
upon any fractional part of a dollar.
(10) In charter counties which have adopted any the discretionary
surtax pursuant to s. 212.055 1 percent tax, the following brackets
shall be applicable to all taxable transactions which would otherwise
have been transactions taxable at the rate of 6 5 percent:
(a) On single sales of less than 7 10 cents, no tax shall be added.
(b) On single sales in amounts from 7 10 cents to 14 16 cents, both
inclusive, 1 cent shall be added for taxes.
(c) On sales in amounts from 15 17 cents to 28 33 cents, both
inclusive, 2 cents shall be added for taxes.
(d) On sales in amounts from 29 34 cents to 42 50 cents, both
inclusive, 3 cents shall be added for taxes.
(e) On sales in amounts from 43 51 cents to 57 66 cents, both
inclusive, 4 cents shall be added for taxes.
(f) On sales in amounts from 58 67 cents to 71 83 cents, both
inclusive, 5 cents shall be added for taxes.
(g) On sales in amounts from 72 84 cents to 85 cents $1, both
inclusive, 6 cents shall be added for taxes.
(h) On sales in amounts from 86 cents to $1, both inclusive, 7 cents
shall be added for taxes.
(i)(h) On sales in amounts from $1 up to, and including, the first
$1,000 in price, 7 6 percent shall be charged upon each dollar of price,
plus the appropriate bracket charge upon any fractional part of a
dollar in counties levying the surtax pursuant to s. 212.055(1).
(j)(44 On sales in amounts of more than $1,000 in price, 7 6 percent
shall be added upon the first $1,000 in price, and 6 5 percent shall be
added upon each dollar of price in excess of the first $1,000 in price,
plus the bracket charges upon any fractional part of a dollar as
provided for in subsection (9) in counties levying the surtax pursuant to
s. 212.055(1).
(k) On sales in amounts from $1 up to, and including, the first $5,000
in price, 7 percent shall be charged upon each dollar of price, plus the
appropriate bracket charge upon any fractional part of a dollar in
counties levying the surtax pursuant to s. 212.055(3).
(1) On sales in amounts of more than $5,000 in price, 7 percent shall
be added upon the first $5,000 in price, and 6 percent shall be added
upon each dollar of price in excess of the first $5,000 in price, plus the
bracket charges upon any fractional part of a dollar as provided for in
subsection (9) in counties levying the surtax pursuant to s. 212.055(3).
Section 9. Subsection (2) of section 218.61, Florida Statutes, is
amended to read:

(2) Notwithstanding the provisions of s. 212.20(1), 8.081 9.697
percent of the proceeds remitted pursuant to part I of chapter 212 by a
sales tax dealer located within the county shall be transferred into the
Local Government Half-cent Sales Tax Clearing Trust Fund and
earmarked for distribution to the governing body of that county and of
each municipality within that county. Such moneys shall be known as
the "local government half-cent sales tax." "Proceeds" means all funds
collected and received by the Department of Revenue, including any
interest or penalties.
Section 10. Sections 212.059, 212.0591, and 212.0595, Florida
Statutes, as created by chapter 87-6, Laws of Florida, and amended by
chapters 87-72 and 87-101, Laws of Florida, and this act, are hereby
repealed.
Section 11. Sections 212.0592 and 212.0593, Florida Statutes, as
created by chapter 87-6, Laws of Florida, and amended by chapter
87-101, Laws of Florida, and this act, are hereby repealed.
Section 12. Sections 212.0594 and 212.0598, Florida Statutes, as
created by chapter 87-101, Laws of Florida, and amended by this act,
are hereby repealed.
Section 13. Section 212.02, Florida Statutes, 1986 Supplement, as
amended by chapters 87-6, 87-101, and 87-402, Laws of Florida, is
amended to read:
212.02 Definitions.-The following terms and phrases when used in
this chapter have the meanings ascribed to them in this section, except
where the context clearly indicates a different meaning:
(1) The term "admissions" means and includes the net sum of money
after deduction of any federal taxes for admitting a person or vehicle or
persons to any place of amusement, sport, or recreation or for the
privilege of entering or staying in any place of amusement, sport, or
recreation, including, but not limited to, theaters, outdoor theaters,
shows, exhibitions, games, races, or any place where charge is made by
way of sale of tickets, gate charges, seat charges, box charges, season
pass charges, cover charges, greens fees, participation fees, entrance
fees, or other fees or receipts of anything of value measured on an
admission or entrance or length of stay or seat box accommodations in
any place where there is any exhibition, amusement, sport, or
recreation, and all dues paid to private clubs providing recreational
facilities, including but not limited to golf, tennis, swimming, yacht-
ing, and boating facilities.
(2) "Affiliated group" means: an affiliated group of corporations, as
defined in & 1504(a) ef the Internal Revenue Code, whose members are
includable under s- 1504(b), (e)- e () of the Internal Revenue Code,
and are eligible to file a eensolidated tax return for Federal corporate
income ta" purposes, or mutual insurance companies whieh are
members of eone insurance holding eeompany system subject to
r. 628.801- however, &- 1504b)(2) sh- net apply to this definition
However, the taxpayer may eleet, pursuant to rules of the department
governing the procedure for making and amending sueh eleetion- to
define its affiliated group in a manner whieh exeludes any member
who has no tax nexus in this state and any member whose business
activities are unrelated to the business activities f other members of
the group. however, in no event shall a parent corporation of an
included member be excluded from the affiliated group.
(2)3) "Business" means any activity engaged in by any person, or
caused to be engaged in by him, with the object of private or public
gain, benefit, or advantage, either direct or indirect. Except for the
sales of any aircraft, boat, mobile home, or motor vehicle, the term
"business" shall not be construed in this chapter to include occasional
or isolated sales or transactions involving tangible personal property
or services by a person who does not hold himself out as engaged in
business, but includes other charges for the sale or rental of tangible
personal property, sales of services taxable under this part, sales of or
charges of admission, communication services, all rentals and leases of
living quarters, other than low-rent housing operated under chapter
421, sleeping or housekeeping accommodations in hotels, apartment
houses, roominghouses, tourist or trailer camps, and all rentals of or
licenses in real property, other than low-rent housing operated under

chapter 421, all leases or rentals of or licenses in parking lots or
garages for motor vehicles, docking or storage spaces for boats in boat

October 1, 1987

chapter be deemed an apartment house.
(c) Every house, boat, vehicle, motor court, trailer court, or other
structure or any place or location kept, used, maintained, or advertised
as, or held out to the public to be, a place where living quarters or
sleeping or housekeeping accommodations are supplied for pay to

OF REPRESENTATIVES 45

docks or marinas as defined in this chapter and made subject to a tax
imposed by this chapter. Any tax on such sales, charges, rentals,
admissions, or other transactions made subject to the tax imposed by
this chapter shall be collected by the state, county, municipality, any
political subdivision, agency, bureau, or department, or other state or
local governmental instrumentality in the same manner as other
dealers, unless specifically exempted by this chapter.
(3)(4) The terms "cigarettes," "tobacco," or "tobacco products"
referred to in this chapter include all such products as are defined or
may be hereafter defined by the laws of the state.
(4)(5) "Cost price" means the actual cost of articles of tangible
personal property or services without any deductions therefrom on
account of the cost of materials used, labor or service costs, transporta-
tion charges, or any expenses whatsoever.
(6) "Costs of performance" means direct easts determined in a
manner eensistent with generally a 4eepted accounting principles aed
in aeeordanee with accepted renditions or praetiees in the type ef trade
or business in which the service provider engages.
(5)(7 The term "department" means the Department of Revenue.
k4) "Employee" means any person who is not an independent
eontraetor and whose wages or remuneration are subject to tax under
the Federal Insurae Contributions At or under the Federal
Unemployment Tax Aet er whose wages or remuneration are subject
to withholding for federal income tax purposes.
(9) "Employer" means any person who must pay taxes on wages
under the Federal Insuranee Contributions Aet r under the Federal
Unemployment Tax Aet eor who must withhold taxes from wages for
federal ineeome tax purposes-
(6)40) "Enterprise zone" means an area of the state authorized to be
an enterprise zone pursuant to s. 290.0055 and approved by the
secretary of the Department of Community Affairs pursuant to
s. 290.0065. This subsection shall expire and be void on December 31,
1994.
(7)14-) "Factory-built building" means a structure manufactured in a
manufacturing facility for installation or erection as a finished
building; "factory-built building" includes, but is not limited to,
residential, commercial, institutional, storage, and industrial struc-
tures.
(8)42) "In this state" or "in the state" means within the state
boundaries of Florida as defined in s. 1, Art. II of the Constitution of
the State of Florida and includes all territory within these limits
owned by or ceded to the United States.
(9)43) The term "intoxicating beverages" or "alcoholic beverages"
referred to in this chapter includes all such beverages as are so defined
or may be hereafter defined by the laws of the state.
(10)44) "Lease," "let," or "rental" means leasing or renting of living
quarters or sleeping or housekeeping accommodations in hotels,
apartment houses, roominghouses, tourist or trailer camps and real
property, the same being defined as follows:
(a) Every building or other structure kept, used, maintained, or
advertised as, or held out to the public to be, a place where sleeping
accommodations are supplied for pay to transient or permanent guests
or tenants, in which 10 or more rooms are furnished for the
accommodation of such guests, and having one or more dining rooms or
cafes where meals or lunches are served to such transient or
permanent guests, such sleeping accommodations and dining rooms or
cafes being conducted in the same building or buildings in connection
therewith, shall, for the purpose of this chapter, be deemed a hotel.
(b) Any building, or part thereof, where separate accommodations for
two or more families living independently of each other are supplied to
transient or permanent guests or tenants shall for the purpose of this

46

transient or permanent guests or tenants, whether in one or adjoining
buildings, shall for the purpose of this chapter be deemed a rooming
house.
(d) In all hotels, apartment houses, and roominghouses within the
meaning of this chapter, the parlor, dining room, sleeping porches,
kitchen, office, and sample rooms shall be construed to mean "rooms."
(e) A "tourist camp" is a place where two or more tents, tent houses,
or camp cottages are located and offered by a person or municipality
for sleeping or eating accommodations, most generally to the transient
public for either a direct money consideration or an indirect benefit to
the lessor or owner in connection with a related business.
(f) A "trailer camp," "mobile home park," or "recreational vehicle
park" is a place where space is offered, with or without service
facilities, by any persons or municipality to the public for the parking
and accommodation of two or more automobile trailers, mobile homes,
or recreational vehicles which are used for lodging, for either a direct
money consideration or an indirect benefit to the lessor or owner in
connection with a related business, such space being hereby defined as
living quarters, and the rental price thereof shall include all service
charges paid to the lessor.

(g) "Lease," "let," or "rental" also means the leasing or rental of
tangible personal property and the possession or use thereof by the
lessee or rentee for a consideration, without transfer of the title of such
property, except as expressly provided to the contrary herein. The term
"lease," "let," "rental" or "service" does not mean hourly, daily, or
mileage charges, to the extent that such charges are subject to the
jurisdiction of the United States Interstate Commerce Commission,
when such charges are paid by reason of the presence of railroad cars
owned by another on the tracks of the taxpayer; or charges made
pursuant to ear service agreements.
(h) "Real property" means land, improvements thereto, and fixtures,
and is synonymous with "realty" and "real estate."

(i) "License, as used in this chapter with reference to the use of real
property, means the granting of a privilege to use or occupy a building
or a parcel of real property for any purpose.

(11)(4) "Motor fuel" means and includes what is commonly known
and sold as gasoline and fuels containing a mixture of gasoline and
other products.

(12)46) "Nurseryman" or "grower" means any person engaged in the
production of nursery stock or horticultural plants.

(13)(-17 "Person" includes any individual, firm, copartnership, joint
adventure, association, corporation, estate, trust, business trust,
receiver, syndicate, or other group or combination acting as a unit and
includes any political subdivision, municipality, state agency, bureau,
or department and the plural as well as the singular number.
(14) "Qualified motion picture" means all or any part of a series of
related images, either on film, tape or other embodiment, including, but
not limited to, all items comprising part of the original work and
film-related products derived therefrom as well as duplicates and prints
thereof and all sound recordings created to accompany a motion picture,
which is produced, adapted or altered for exploitation in, on or through
any medium or device and at any location, primarily for entertainment,
industrial or educational purposes.
(15) "Qualified production services" means any activity or service
performed directly in connection with the production of qualified motion
pictures, and includes:
1. Photography, sound and recording, casting, location managing and
scouting, shooting, creation of special and optical effects, animation,
adaptation (language, media, electronic or otherwise), technological
modifications, computer graphics, set and stage support (such as
electricians, lighting designers and operators, greensmen, prop manag-
ers and assistants, and grips), wardrobe (design, preparation and
management), hair and make-up (design, production, and application),
performing (such as acting, dancing and playing), designing and

dailies, dubbing, mixing, editing, cutting, looping, printing, processing,
duplicating, storing, and distributing;
2. The design, planning, engineering, construction, alteration, repair
and maintenance of real or personal property including stages, sets,
props, models, paintings, and facilities principally required for the
performance of those services listed in subparagraph 1.; and
3. Property management services directly related to property used in
connection with the services described in subparagraphs 1. and 2.

(16)484 "Retailer" means and includes every person engaged in the
business of making sales at retail, or for distribution, or use, or
consumption, or storage to be used or consumed in this state.

(17)(-9)(a) "Retail sale" or a "sale at retail" means a sale to a
consumer or to any person for any purpose other than for resale in the
form of tangible personal property or services, and includes all such
transactions that may be made in lieu of retail sales or sales at retail.
" Retail sale does net include fee sharing for services described in
s. 47-504-1 by persons licensed under chapter 475 A sale of a service
shall be considered a sale for resale enly if

but aets as a broker or intermediary ini procuring a service for his
client or eustomerq
9- The purchaser of the service buys the service pursuant to a
written contract with the seller and such contract identifies the client
or customer for whom the purchaser is buying the service
3. The purchaser of the service separately states the value of the
service purchased at the purchase price in his charge for the service on
its subsequent sale;
4; The service, with its value separately stated, will be taxed under
this part in a subsequent sale unless other-wise exempt pursuant to
s- 212.0592(1); and
5. The service is purchased pursuant to a service resale permit by a
dealer who is primarily engaged in the business of selling services. The
department shall provide by rule for the issuance and periodic renewal
every 5 years of sueh resale permits.
However, a sale, to other than an end user o ef telecommunication
services consisting of a right of access for which an access charge, as
defined in 7 203.012(1), is inmposerd, is a sale for resale.

(b) The terms "retail sales," "sales at retail," "use," "storage," and
"consumption" include the sale, use, storage, or consumption of all
tangible advertising materials imported or caused to be imported into
this state. Tangible advertising material includes displays, display
containers, brochures, catalogs, pricelists, point-of-sale advertising,
and technical manuals or any tangible personal property which does
not accompany the product to the ultimate consumer.
(c) "Retail sales," "sale at retail," "use," "storage," and "consump-
tion" do not include materials, containers, labels, sacks, or bags
intended to be used one time only for packaging tangible personal
property for sale or for packaging in the process of providing a service
taxable under this part and do not include the sale, use, storage, or
consumption of industrial materials, including chemicals and fuels
except as provided herein, for future processing, manufacture, or
conversion into articles of tangible personal property for resale when
such industrial materials, including chemicals and fuels except as
provided herein, become a component or ingredient of the finished
product. However, said terms include the sale, use, storage, or
consumption of tangible personal property, including machinery and
equipment or parts thereof, purchased electricity, and fuels used to
power machinery, when said items are used and dissipated in
fabricating, converting, or processing tangible personal property for
sale, even though they may become ingredients or components of the
tangible personal property for sale through accident, wear, tear,
erosion, corrosion, or similar means.
(d) "Gross sales" means the sum total of all sales of tangible personal

property or services as defined herein, without any deduction whatso-
ever of any kind or character, except as provided in this chapter.

JOURNAL OF THE HOUSE OF REPRESENTATIVES

JOURNAL OF THE HOUSE OF REPRESENTATIVES

(e) The term "retail sale" includes a mail order sale, as defined in
s. 212.0596(1).
(18)(20) "Sale" means and includes:
(a) Any transfer of title or possession, or both, exchange, barter,
license, lease, or rental, conditional or otherwise, in any manner or by
any means whatsoever, of tangible personal property for a considera-
tion.
(b) The rental of living quarters or sleeping or housekeeping
accommodations in hotels, apartment houses or roominghouses, or
tourist or trailer camps, as hereinafter defined in this chapter.
(c) The producing, fabricating, processing, printing, or imprinting of
tangible personal property for a consideration for consumers who
furnish either directly or indirectly the materials used in the
producing, fabricating, processing, printing, or imprinting.
(d) The furnishing, preparing, or serving for a consideration of any
tangible personal property for consumption on or off the premises of
the person furnishing, preparing, or serving such tangible personal
property which includes the sale of meals or prepared food by an
employer to his employees.
(e) A transaction whereby the possession of property is transferred
but the seller retains title as security for the payment of the price.
(f) Any transfer, provision, or rendering of services for a considera-
tion.
(19)-24) "Sales price" means the total amount paid for tangible
personal property or services, including any services that are a part of
the sale and any tangible personal property that is part of the service,
valued in money, whether paid in money or otherwise, and includes
any amount for which credit is given to the purchaser by the seller,
without any deduction therefrom on account of the cost of the property
sold, the cost of materials used, labor or service cost, interest charged,
losses, or any other expense whatsoever. "Sales price" also includes the
consideration for a transaction which requires both labor and or
material to alter, remodel, maintain, adjust, or repair tangible
personal property. Trade-ins or discounts allowed and taken at the
time of sale shall not be included within the purview of this subsection.
(22) The term "serie er seviee" s as serd in this part means these
activities usually provided fe sior eatiea by the following estab-
lishmcnts listed i* the SIC Manuahl
(a) Agricultural Servies (Major Group Num... ber 087)
(4) Forestry Serviees (Major Group Number 085).
e) Metal Mining Serviees (Greup Number 108T
(44 i04 and Gas Field Services (GIrop Num(ber 138)
(e) Nenmetallie (Nenfue4e Mineral Serviees (Grfoup Number 148)
(f Building Genstruetion General eCntraeters and Operative Bunild
ers (Major Group Number 4-5)-
(g) Construetion other than Building Construetion General Contrae
ters (Major Group Number 16t
(h) construction Speeial Trade Centraeters (Major Group tNumber
17
(4 Printing, Publishing, aud Allied Services (Major Group Number
27
( CGoating, Engra.ving and Allied Services (Group Number 347)
(k) Railroad Transportation (Major Group Number 40
(1 Loeeal and Suburban Transit and Interurban Highway Passenger
Transportation (Major Group Number 41.)
(m) Meter Freight Transportation and Warehousing (Major Group
Number 45t
(-- U.S Pestal Seriee (Major Group TNumber 43.

() -Water Transportation (Major Group Number 44)
(p4 Transportation by Air (Major Group Number. 45).

(gg) Miseellaneous Repair Serviees G(Major Gup Number 74
(hh) Motion Pietures (Major Group- Number 7-
(44 Amusement and Reereatie n Serviees, emeept Metien Pietures
(Major Group Number 7J9
(j9 Health Services (Maj r Group .Number 80
(kk4 Legal Serviees (Maj r Group tNumber 84-.
(11 Edueational Serviees (Major Group tNumber 82)
(mm -Seeial Serviees (Majae Geap Number
(nt) Museums, Art Galleries, Botanical and Zoological Gardens
(Major- Grp Number 84
(oe Membership Organizations (Major Group Number 86)-
(pp Miseellaneous Services (Major Group Number 80
(qq4 Legislative Judicial, Administrative and Regulatery Activities
of Federal, State, Leeal and International Governments (Major Group
Numbers 9-) 92 93 94-, 95, 9K and 97+
In addition, the terms shall include the services f any independent
broker of tangible personal property.
(20)(2) "Special fuel" means any liquid product, gas product, or
combination thereof used in an internal combustion engine or motor to
propel any form of vehicle, machine, or mechanical contrivance. This
term includes, but is not limited to, all forms of fuel commonly or
commercially known or sold as diesel fuel or kerosene. However, the
term "special fuel" does not include butane gas, propane gas, or any
other form of liquefied petroleum gas or compressed natural gas.
(21)(24) "SIC" means those classifications contained in the Standard
Industrial Classification Manual, 1972, as published by the Office of
Management and Budget, Executive Office of the President, and as
amended in the 1977 Supplement.
(22)(254 "Storage" means and includes any keeping or retention in
this state of tangible personal property for use or consumption in this
state or for any purpose other than sale at retail in the regular course
of business.
(23)(26) "Tangible personal property" means and includes personal
property which may be seen, weighed, measured, or touched or is in
any manner perceptible to the senses, including electric power or
energy, boats, motor vehicles and mobile homes as defined in

s. 320.01(1) and (2), aircraft as defined in s. 330.27, and all other types
of vehicles. The term "tangible personal property" does not include

October 1, 1987

47

48 JOURNAL OF THE HOUS1

stocks, bonds, notes, insurance, or other obligations or securities;
intangibles as defined by the intangible tax law of the state;
pari-mutuel tickets sold or issued under the racing laws of the states or
factory built buildings during eenstruetion thereafter.
(24)(2F) "Use" means and includes the exercise of any right or power
over tangible personal property incident to the ownership thereof, or
interest therein, except that it does not include the sale at retail of that
property in the regular course of business. "Use" also means the
consumption or enjoyment of the benefit of services.
(25)(-8) The term "use tax" referred to in this chapter includes the
use, the consumption, the distribution, and the storage as herein
defined of tangible personal property or services.
Section 14. Paragraph (a) of subsection (1) of section 212.031, Florida
Statutes, 1986 Supplement, as amended by chapters 87-6 and 87-101,
Laws of Florida, is amended to read:
212.031 Lease or rental of or license in real property.-
(1)(a) It is declared to be the legislative intent that every person is
exercising a taxable privilege who engages in the business of renting,
leasing, letting, or granting a license for the use of any real property
unless such property is:
1. Assessed as agricultural property under s. 193.461.
2. Used exclusively as dwelling units.
3. Property subject to tax on parking, docking, or storage spaces
under s. 212.03(6).
4. Recreational property or the common elements of a condominium
when subject to a lease between the developer or owner thereof and the
condominium association in its own right or as agent for the owners of
individual condominium units or the owners of individual condomin-
ium units. However, only the lease payments on such property shall be
exempt from the tax imposed by this chapter, and any other use made
by the owner or the condominium association shall be fully taxable
under this chapter.
5. A public or private street or right-of-way occupied or used by a
utility for utility purposes.
6. A public street or road which is used for transportation purposes.
7. Property used at an airport exclusively for the purpose of aircraft
landing or aircraft taxiing or property used by an airline for the
purpose of loading or unloading passengers or property onto or from
aircraft or for fueling aircraft.
8. Property used at a port authority as defined in s. 315.02(2)
exclusively for the purpose of oceangoing vessels or tugs docking, or
such vessels mooring on property used by a port authority for the
purpose of loading or unloading passengers or cargo onto or from such
a vessel, or property used at a port authority for fueling such vessels.
9. Property used as an integral part of the performance of qualified
production services as defined in s212.0592(18)(a).
10. Leased, subleased, or rented to a person providing food and drink
concessionaire services within the premises of a movie theater, a
business operated under a permit issued pursuant to chapter 550 or
chapter 551, or any publicly owned arena, sports stadium, convention
hall, exhibition hall, auditorium, or recreational facility. A person
providing retail concessionaire services involving the sale of food and
drink or other tangible personal property within the premises of an
airport shall be subject to tax on the rental of real property used for
that purpose, but shall not be subject to the tax on any license to use
the property. For purposes of this subparagraph, the term "sale" shall
not include the leasing of tangible personal property.
Section 15. Paragraph (b) of subsection (1) and subsection (4) of
section 212.06, Florida Statutes, 1986 Supplement, as amended by
chapter 87-6, Laws of Florida, are amended to read:

212.06 Sales, storage, use tax; collectible from dealers; "dealer"
defined; dealers to collect from purchasers; legislative intent as to
scope of tax.-
(1)

-or %."r rw f 4L irA li r lrll llrd lry -ql

in this state of the following are hereby specifically exempt from the
tax imposed by part I of this chapter.
(5) EXEMPTIONS; ACCOUNT OF USE.-
(b) Machinery and equipment used to increase productive output.-

4j

SOF REPRESENTATIVES October 1, 1987

(b) Except as otherwise provided, any person who manufactures,
produces, compounds, processes, or fabricates in any manner tangible
personal property for his own use shall pay a tax upon the cost of the
product manufactured, produced, compounded, processed, or fabricated
without any deduction therefrom on account of the cost of material
used, labor or service costs, or transportation charges, notwithstanding
the provisions of s. 212.02 defining "cost price." However, the tax
levied under this paragraph shall not be imposed upon any person who
manufactures or produces electrical power or energy, steam energy, or
other energy, when such power or energy is used directly and
exclusively in the operation of machinery or equipment that is used to
manufacture, process, compound, produce, fabricate, or prepare for
shipment tangible personal property for sale or to operate pollution
control equipment, maintenance equipment, or monitoring or control
equipment used in such operations. The manufacturing or production
of electrical power or energy that is used for space heating, lighting,
office equipment, or air conditioning or any other nonmanufacturing,
nonprocessing, noncompounding, nonproducing, nonfabricating, or
nonshipping activity is taxable. Electrical power or energy consumed
or dissipated in the transmission or distribution of electrical power or
energy for resale is also not taxable. Fabrication labor shall not be
taxable when a person is using his own equipment and his own
personnel, for his own account, as a producer, subproducer, or
coproducer of a qualified motion picture as defined in s- 212.0592
(18)(b) prepared for showing on screens or through television, for either
theatrical, commercial, advertising, or educational purposes. Persons
who manufacture factory-built buildings for their own use in the
performance of contracts for the construction or improvement of real
property shall pay a tax only upon the persons' cost price of items used
in the manufacture of such buildings.
(4) On all tangible personal property imported or caused to be
imported from other states, territories, the District of Columbia, or any
foreign country, and used by him, and on al services purchased in
ether states, triteitoes, the Distriet of Columbia-, er any foreign
eeont'ry and used by him, the dealer as herein defined, shall pay the
tax imposed by this chapter on all articles of tangible personal
property so imported and used, and on all services so purchased and
used, the same as if such articles oe services had been sold at retail for
use or consumption in this state. For the purposes of this chapter, the
use, or consumption, or distribution, or storage to be used or consumed
in this state of tangible personal property shall each be equivalent to a
sale at retail; and the tax shall thereupon immediately levy and be
collected in the manner provided herein, provided there shall be no
duplication of the tax in any event.
Section 16. Paragraph (a) of subsection (1) of section 212.07, Florida
Statutes, 1986 Supplement, as amended by chapter 87-6, Laws of
Florida, is amended to read:
212.07 Sales, storage, use tax; tax added to purchase price; dealer
not to absorb; liability of purchasers who cannot prove payment of the
tax; penalties; general exemptions.-
(1)(a) The privilege tax herein levied measured by retail sales shall
be collected by the dealers from the purchaser or consumer. Except as
otherwise speeifically provided, the sales ad se ta* serve
herein levied meas-ured by retail sales shall likewise be eeoeected by
the dealers from the purchaser ee consumer,
Section 17. (1) Paragraphs (b), (c) and (d) of subsection (5) and
paragraphs (e) and (o) of subsection (7) of section 212.08, Florida
Statutes, 1986 Supplement, as amended by section 14 of chapter 87-6,
chapter 87-72, and section 13 of chapter 87-101, Laws of Florida, are
amended, and paragraph (v) is added to subsection (7) of said section,
to read:
212.08 Sales, rental, use, consumption, distribution, and storage tax;
specified exemptions.-The sale at retail, the rental, the use, the
consumption, the distribution, and the storage to be used or consumed

JOURNAL OF THE HOUSI

1. Industrial machinery and equipment purchased for use in new
businesses which manufacture, process, compound, or produce for sale
items of tangible personal property at fixed locations and services
directly related to the installation of sueh machinery and equipment,
excluding eonstruetion services are exempt from the tax imposed by
this chapter upon an affirmative showing by the taxpayer to the
satisfaction of the department that such items are used in a new
business in this state. Such purchases must be made prior to the date
the business first begins its productive operations, and delivery of the
purchased item must be made within 12 months of that date.
2. Industrial machinery and equipment purchased for use in
expanding manufacturing facilities or plant units which manufacture,
process, compound, or produce for sale items of tangible personal
property at fixed locations in this state and services direetly related to
the installation of sueh machinery and equipment, excluding een-
struetion services, are exempt from any amount of tax imposed by this
chapter in excess of $100,000 per calendar year upon an affirmative
showing by the taxpayer to the satisfaction of the department that
such items are used to increase the productive output of such expanded
business by not less than 10 percent.
3.a. To receive an exemption provided by subparagraph 1. or
subparagraph 2., a qualifying business entity shall apply to the
department for a temporary tax exemption permit. The application
shall state that a new business exemption or expanded business
exemption is being sought. Upon a tentative affirmative determination
by the department pursuant to subparagraph 1. or subparagraph 2.,
the department shall issue such permit.
b. The applicant shall be required to maintain all necessary books
and records to support the exemption. Upon completion of purchases of
qualified machinery; and equipment; or services pursuant to subpara-
graph 1. or subparagraph 2., the temporary tax permit shall be
delivered to the department or returned to the department by certified
or registered mail. The department shall have 4 years from the date of
delivery or date of receipt to perform an audit of such purchases,
notwithstanding the provisions of s. 212.14(6).
c. If, in a subsequent audit conducted by the department, it is
determined that the machinery, and equipment or services purchased
as exempt under subparagraph 1. or subparagraph 2. did not meet the
criteria mandated by this paragraph or if commencement of production
did not occur, the amount of taxes exempted at the time of purchase
shall immediately be due and payable to the department by the
business entity, together with the appropriate interest and penalty,
computed from the date of purchase, in the manner prescribed by this
chapter.
d. In the event a qualifying business entity fails to apply for a
temporary exemption permit or if the tentative determination by the
department required to obtain a temporary exemption permit is
negative, a qualifying business entity shall receive the exemption
provided in subparagraph 1. or subparagraph 2. through a refund of
previously paid taxes. No refund may be made for such taxes unless
the criteria mandated by subparagraph 1. or subparagraph 2. have
been met and commencement of production has occurred.
4. The department shall promulgate rules governing applications for,
issuance of, and the form of temporary tax exemption permits;
provisions for recapture of taxes; and the manner and form of refund
applications and may establish guidelines as to the requisites for an
affirmative showing of increased productive output, commencement of
production, and qualification for exemption.
5. The exemptions provided in subparagraphs 1. and 2. do not apply
to machinery; or equipment; oF services purchased or used by electric
utility companies, communications companies, phosphate or other solid
minerals severance, mining, or processing operations, oil or gas
exploration or production operations, printing or publishing firms, any
firm subject to regulation by the Division of Hotels and Restaurants of
the Department of Business Regulation, or any firm which does not
manufacture, process, compound, or produce for sale items of tangible
personal property.

6. For the purposes of the exemptions provided in subparagraphs 1.
and 2., these terms have the following meanings:

October 1, 1987

receipts so attributable, accrued for the year of completion or
commencement.
3. The exemption provided by this paragraph shall inure to the
taxpayer only through refund of previously paid taxes. Such refund

OF REPRESENTATIVES 49

a. "Industrial machinery and equipment" means "section 38 proper-
ty" as defined in s. 48(a)(1)(A) and (B)(i) of the Internal Revenue Code,
provided "industrial machinery and equipment" shall be construed by
regulations adopted by the Department of Revenue to mean tangible
property used as an integral part of the manufacturing, processing,
compounding, or producing for sale of items of tangible personal
property. Such term includes parts and accessories only to the extent
that the exemption thereof is consistent with the provisions of this
paragraph.
b. "Productive output" means the number of units actually produced
by a single plant or operation in a single continuous 12-month period,
irrespective of sales. Increases in productive output shall be measured
by the output for 12 continuous months immediately following the
completion of installation of such machinery or equipment over the
output for the 12 continuous months immediately preceding such
installation. However, if a different 12-month continuous period of
time would more accurately reflect the increase in productive output of
machinery and equipment purchased to facilitate an expansion, the
increase in productive output may be measured during that 12-month
continuous period of time if such time period is mutually agreed upon
by the Department of Revenue and the expanding business prior to the
commencement of production; but in no case may such time period
begin later than 2 years following the completion of installation of the
new machinery and equipment. The units used to measure productive
output shall be physically comparable between the two periods,
irrespective of sales.
(c) Machinery; and equipment or services used in production of
electrical or steam energy. The purchase of machinery and equipment
for use at a fixed location, which equipment and machinery are
necessary in the production of electrical or steam energy resulting
from the burning of boiler fuels other than residual oil, is and services
directly related to the installation of sueh machinery and equipment,
exeelding ee.nstruetien services, ae exempt from the tax imposed by
this chapter. Such electrical or steam energy must be primarily for use
in manufacturing, processing, compounding, or producing for sale
items of tangible personal property in this state. However, the
exemption provided for in this paragraph shall not be allowed unless
the purchaser signs an affidavit stating that the item or items to be
exempted are for the exclusive use designated herein. Any person
furnishing a false affidavit to the vendor for the purpose of evading
payment of any tax imposed under chapter 212 shall be subject to the
penalty set forth in s. 212.085 and as otherwise provided by law.
(d) Machinery; and equipment; or services used under federal
procurement contract.-
1. Industrial machinery and equipment purchased by an expanding
business which manufactures tangible personal property pursuant to
federal procurement regulations at fixed locations in this state and
services directly related to the installation of sueh machinery and
equipment, eluding eenstruetion se esare partially exempt from
the tax imposed in this chapter on that portion of the tax which is in
excess of $100,000 per calendar year upon an affirmative showing by
the taxpayer to the satisfaction of the department that such items are
used to increase the implicit productive output of the expanded
business by not less than 10 percent. The percentage of increase is
measured as deflated implicit productive output for the calendar year
during which the installation of the machinery or equipment is
completed or during which commencement of production utilizing such
items is begun divided by the implicit productive output for the
preceding calendar year. In no case may the commencement of
production begin later than 2 years following completion of installation
of the machinery or equipment.
2. The amount of the exemption allowed shall equal the taxes
otherwise imposed by this chapter in excess of $100,000 per calendar
year on qualifying industrial machinery; or equipment, or services
reduced by the percentage of gross receipts from cost-reimbursement
type contracts attributable to the plant or operation to total gross

50

shall be made within 30 days of formal approval by the department of
the taxpayer's application, which application may be made on an
annual basis following installation of the machinery or equipment.
4. For the purposes of this paragraph, the term:
a. "Cost-reimbursement type contracts" has the same meaning as in
32 C.F.R. s. 3-405.
b. "Deflated implicit productive output" means the product of
implicit productive output times the quotient of the national defense
implicit price deflator for the preceding calendar year divided by the
deflator for the year of completion or commencement.
c. "Eligible costs" means the total direct and indirect costs, as
defined in 32 C.F.R. ss. 15-202 and 15-203, excluding general and
administrative costs, selling expenses, and profit, defined by the
uniform cost-accounting standards adopted by the Cost-Accounting
Standards Board created pursuant to 50 U.S.C. s. 2168.
d. "Implicit productive output" means the annual eligible costs
attributable to all contracts or subcontracts subject to federal procure-
ment regulations of the single plant or operation at which the
machinery or equipment is used.
e. "Industrial machinery and equipment" means "section 38 proper-
ty" as defined in s. 48(a)(1)(A) and (B)(i) of the Internal Revenue Code,
provided such industrial machinery and equipment qualified as an
eligible cost under federal procurement regulations and are used as an
integral part of the tangible personal property production process.
Such term includes parts and accessories only to the extent that the
exemption of such parts and accessories is consistent with the
provisions of this paragraph.
f. "National defense implicit price deflator" means the national
defense implicit price deflator for the gross national product as
determined by the Bureau of Economic Analysis of the United States
Department of Commerce.
5. The exclusions provided in subparagraph (b)5. apply to this
exemption. This exemption applies only to machinery or equipment
purchased pursuant to production contracts with the United States
Department of Defense and Armed Forces, the National Aeronautics
and Space Administration, and other federal agencies for which the
contracts are classified for national security reasons. In no event shall
the provisions of this paragraph apply to any expanding business the
increase in productive output of which could be measured under the
provisions of sub-subparagraph (b)6.b. as physically comparable be-
tween the two periods.
(7) MISCELLANEOUS EXEMPTIONS.-
(e) Film rentals.-Film rentals are exempt when an admission is
charged for viewing such film, and license fees and direct charges for
films, videotapes, and transcriptions used by television or radio
stations or networks are exempt. However this exemption shall net be
eeonstried to eempt the sale eo use of advertising.
(o) Religious, charitable, scientific, educational, and veterans' insti-
tutions and organizations.-
1. There are exempt from the tax imposed by part I of this chapter
transactions involving:
a. Sales or leases directly to churches or sales or leases of tangible
personal property or services by churches;
b. Sales or leases to nonprofit religious, nonprofit charitable,
nonprofit scientific, or nonprofit educational institutions when used in
carrying on their customary nonprofit religious, nonprofit charitable,
nonprofit scientific, or nonprofit educational activities, including
church cemeteries; and
c. Sales or leases to the state headquarters of qualified veterans'
organizations and the state headquarters of their auxiliaries when
used in carrying on their customary veterans' organization activities.
If a qualified veterans' organization or its auxiliary does not maintain
a permanent state headquarters, then transactions involving sales or
leases to such organization and used to maintain the office of the

highest ranking state official are exempt from the tax imposed by this
part.

October 1, 1987

2. The provisions of this section authorizing exemptions from tax
shall be strictly defined, limited, and applied in each category as
follows:
a. "Religious institutions" means churches, synagogues, and estab-
lished physical places for worship at which nonprofit religious services
and activities are regularly conducted and carried on. The term
"religious institutions" includes nonprofit corporations the sole purpose
of which is to provide free transportation services to church members,
their families, and other church attendees. The term "religious
institutions" also includes state, district, or other governing or
administrative offices the function of which is to assist or regulate the
customary activities of religious organizations or members.
b. "Charitable institutions" means only nonprofit corporations
qualified as nonprofit pursuant to s. 501(c)(3), United States Internal
Revenue Code, 1954, as amended, and other nonprofit entities, the sole
or primary function of which is to provide, or to raise funds for
organizations which provide, one or more of the following services if a
reasonable percentage of such service is provided free of charge, or at a
substantially reduced cost, to persons, animals, or organizations that
are unable to pay for such service:
(I) Medical aid for the relief of disease, injury, or disability;
(II) Regular provision of physical necessities such as food, clothing,
or shelter;
(III) Services for the prevention of, or rehabilitation of persons from,
alcoholism or drug abuse; the prevention of suicide; or the alleviation
of mental, physical, or sensory health problems;
(IV) Social welfare services including adoption placement, child care,
community care for the elderly, and other social welfare services which
clearly and substantially benefit a client population which is disad-
vantaged or suffers a hardship;
(V) Medical research for the relief of disease, injury, or disability;
(VI) Legal services; or
(VII) Food, shelter, or medical care for animals or adoption services,
cruelty investigations, or education programs concerning animals;
and the term includes groups providing volunteer manpower to
organizations designated as charitable institutions hereunder.
c. "Scientific organizations" means scientific organizations which
hold current exemptions from federal income tax under s. 501(c)(3) of
the Internal Revenue Code and also means organizations the purpose
of which is to protect air and water quality or the purpose of which is
to protect wildlife and which hold current exemptions from the federal
income tax under s. 501(c)(3) of the Internal Revenue Code.
d. "Educational institutions" means state tax-supported or parochial,
church and nonprofit private schools, colleges, or universities which
conduct regular classes and courses of study required for accreditation
by, or membership in, the Southern Association of Colleges and
Schools, the Department of Education, the Florida Council of Indepen-
dent Schools, or the Florida Association of Christian Colleges and
Schools, Inc., or which conduct regular classes and courses of study
accepted for continuing education credit by the American Medical
Association or the American Dental Association. Nonprofit libraries,
art galleries, and museums open to the public are defined as
educational institutions and are eligible for exemption. The term
"educational institutions" includes private nonprofit organizations the
purpose of which is to raise funds for schools teaching grades
kindergarten through high school, colleges, and universities. The term
"educational institutions" includes any nonprofit newspaper of free or
paid circulation primarily on university or college campuses which
holds a current exemption from federal income tax under s. 501(c)(3) of
the Internal Revenue Code, and any educational television or radio
network or system established pursuant to s. 229.805 or s. 229.8051
and any nonprofit television or radio station which is a part of such
network or system and which holds a current exemption from federal
income tax under s. 501(c)(3) of the Internal Revenue Code. The term

"educational institutions" also includes state, district, or other govern-
ing or administrative offices the function of which is to assist or

JOURNAL OF THE HOUSE OF REPRESENTATIVES

regulate the customary activities of educational organizations or
members.
e. "Veterans' organizations" means nationally chartered or recog-
nized veterans' organizations, including, but not limited to, Florida
chapters of the Paralyzed Veterans of America, Catholic War Veterans
of the U.S.A., and Jewish War Veterans of the U.S.A. and the Disabled
American Veterans, Department of Florida, Inc., which hold current
exemptions from federal income tax under s. 501(c)(4) or s. 501(c)(19)
of the Internal Revenue Code.
(v) All personal and professional services, except those expressly taxed
under this part, are exempt.
(2) Effective July 1, 1988, paragraph (b) of subsection (5) of section
212.08, Florida Statutes, 1986 Supplement, as further amended by
section 59 of chapter 87-6 and section 34 of chapter 87-101, Laws of
Florida, is amended to read:
212.08 Sales, rental, use, consumption, distribution, and storage tax;
specified exemptions.-The sale at retail, the rental, the use, the
consumption, the distribution, and the storage to be used or consumed
in this state of the following are hereby specifically exempt from the
tax imposed by part I of this chapter.
(5) EXEMPTIONS; ACCOUNT OF USE.-
(b) Machinery and equipment used to increase productive output.-
1. Industrial machinery and equipment purchased for use in new
businesses which manufacture, process, compound, or produce for sale
items of tangible personal property at fixed locations and services
directly relateEd te the installations of such machinery and equipment,
excluding construction services, are exempt from the tax imposed by
this chapter upon an affirmative showing by the taxpayer to the
satisfaction of the department that such items are used in a new
business in this state. Such purchases must be made prior to the date
the business first begins its productive operations, and delivery of the
purchased item must be made within 12 months of that date.
2. Industrial machinery and equipment purchased for use in
expanding manufacturing facilities or plant units which manufacture,
process, compound, or produce for sale items of tangible personal
property at fixed locations in this state and services directly related to
the installation of such machinery and equipment, x eelding een-
struetion services, are exempt from any amount of tax imposed by this
chapter in excess of $100,000 per calendar year upon an affirmative
showing by the taxpayer to the satisfaction of the department that
such items are used to increase the productive output of such expanded
business by not less than 10 percent.
3.a. To receive an exemption provided by subparagraph 1. or
subparagraph 2., a qualifying business entity shall apply to the
department for a temporary tax exemption permit. The application
shall state that a new business exemption or expanded business
exemption is being sought. Upon a tentative affirmative determination
by the department pursuant to subparagraph 1. or subparagraph 2.,
the department shall issue such permit.
b. The applicant shall be required to maintain all necessary books
and records to support the exemption. Upon completion of purchases of
qualified machinery; and equipment; er series pursuant to subpara-
graph 1. or subparagraph 2., the temporary tax permit shall be
delivered to the department or returned to the department by/ certified
or registered mail.
c. If, in a subsequent audit conducted by the department, it is
determined that the machinery; and equipment; or services purchased
as exempt under subparagraph 1. or subparagraph 2. did not meet the
criteria mandated by this paragraph or if commencement of production
did not occur, the amount of taxes exempted at the time of purchase
shall immediately be due and payable to the department by the
business entity, together with the appropriate interest and penalty,
computed from the date of purchase, in the manner prescribed by this
chapter.
d. In the event a qualifying business entity fails to apply for a

temporary exemption permit or if the tentative determination by the
department required to obtain a temporary exemption permit is

51

negative, a qualifying business entity shall receive the exemption
provided in subparagraph 1. or subparagraph 2. through a refund of
previously paid taxes. No refund may be made for such taxes unless
the criteria mandated by subparagraph 1. or subparagraph 2. have
been met and commencement of production has occurred.
4. The department shall promulgate rules governing applications for,
issuance of, and the form of temporary tax exemption permits;
provisions for recapture of taxes; and the manner and form of refund
applications and may establish guidelines as to the requisites for an
affirmative showing of increased productive output, commencement of
production, and qualification for exemption.
5. The exemptions provided in subparagraphs 1. and 2. do not apply
to machinery; or equipment; oe services purchased or used by electric
utility companies, communications companies, phosphate or other solid
minerals severance, mining, or processing operations, oil or gas
exploration or production operations, printing or publishing firms, any
firm subject to regulation by the Division of Hotels and Restaurants of
the Department of Business Regulation, or any firm which does not
manufacture, process, compound, or produce for sale items of tangible
personal property.
6. For the purposes of the exemptions provided in subparagraphs 1.
and 2., these terms have the following meanings:
a. "Industrial machinery and equipment" means "section 38 proper-
ty" as defined in s. 48(a)(1)(A) and (B)(i) of the Internal Revenue Code,
provided "industrial machinery and equipment" shall be construed by
regulations adopted by the Department of Revenue to mean tangible
property used as an integral part of the manufacturing, processing,
compounding, or producing for sale of items of tangible personal
property. Such term includes parts and accessories only to the extent
that the exemption thereof is consistent with the provisions of this
paragraph.
b. "Productive output" means the number of units actually produced
by a single plant or operation in a single continuous 12-month period,
irrespective of sales. Increases in productive output shall be measured
by the output for 12 continuous months immediately following the
completion of installation of such machinery or equipment over the
output for the 12 continuous months immediately preceding such
installation. However, if a different 12-month continuous period of
time would more accurately reflect the increase in productive output of
machinery and equipment purchased to facilitate an expansion, the
increase in productive output may be measured during that 12-month
continuous period of time if such time period is mutually agreed upon
by the Department of Revenue and the expanding business prior to the
commencement of production; but in no case may such time period
begin later than 2 years following the completion of installation of the
new machinery and equipment. The units used to measure productive
output shall be physically comparable between the two periods,
irrespective of sales.
Section 18. Paragraph (a) of subsection (3), paragraph (c) of
subsection (4), and paragraph (a) of subsection (6) of section 212.095,
Florida Statutes, as amended by chapters 87-6 and 87-101, Laws of
Florida, are amended to read:
212.095 Refunds.-

(3)(a) When a sale is made to a person who claims to be entitled to a
refund under this section, the seller shall make out a sales invoice,
which shall contain the following information:
1. The name and business address of the purchaser.
2. A description of the item oe services sold.
3. The date on which the purchase was made.
4. The price and amount of tax paid for the item er services.
5. The name and place of business of the seller at which the sale was
made.

6. The refund permit number of the purchaser.
(4)

October 1, 1987

JOURNAL OF THE HOUSE OF REPRESENTATIVES

52 JOURNAL OF THE HOUSE

(c) Refund application forms shall include at a minimum the
following information:
1. The name and address of the person claiming the refund.
2. The refund permit number of such person.

3. The location at which the items or services for which a refund is
claimed are used.
4. A description of each such item or serviee and the purpose for
which such item or service was acquired.
5. Copies of the sales invoices of items or services for which a refund
is being claimed.
(6)(a) Each registered dealer shall, in accordance with the require-
ments of the department, keep at his principal place of business in this
state or at the location where the sale is made a complete record or
duplicate sales tickets of all items er services sold by him for which a
refund provided in this section may be claimed, which records shall
contain the information required in paragraph (3)(a).
Section 19. Paragraph (d) of subsection (1) of section 212.11, Florida
Statutes, as created by chapter 87-6, Laws of Florida, and amended by
chapter 87-101, Laws of Florida, is hereby repealed.
Section 20. (1) Subsection (3) of section 212.18, Florida Statutes,
1986 Supplement, as amended by section 21 of chapter 87-6 and
chapter 87-402, Laws of Florida, is amended to read:
212.18 Administration of law; rules and regulations.-
(3) Every person desiring to engage in or conduct business in this
state as a dealer, as defined in this chapter, or to lease, rent, or let or
grant licenses in living quarters or sleeping or housekeeping accom-
modations in hotels, apartment houses, roominghouses, tourist or
trailer camps, or real property, as defined in this chapter, and every
person who sells or receives anything of value by way of admissions,
shall file with the department an application for a certificate of
registration for each place of business, showing the names of the
persons who have interests in such business and their residences, the
address of the business, and such other data as the department may
reasonably require. The application shall be made to the department
before the person, firm, copartnership, or corporation may engage in
such business; and it shall be accompanied by a registration fee of $5.
However, no registration fee is required to accompany an application
to engage in or conduct business or make mail order sales. The
department, upon receipt of such application, will grant to the
applicant a separate certificate of registration for each place of
business, which certificate may be canceled by the department or its
designated assistants for any failure by the certificateholder to comply
with any of the provisions of this chapter. The certificate shall not be
assignable and shall be valid only for the person, firm, copartnership,
or corporation to which issued; and such certificate shall be placed in a
conspicuous place in the business or businesses for which it is issued
and shall be so displayed at all times. No person shall engage in
business as a dealer or in leasing, renting, or letting of or granting
licenses in living quarters or sleeping or housekeeping accommoda-
tions in hotels, apartment houses, roominghouses, tourist or trailer
camps, or real property as hereinbefore defined, nor shall any person
sell or receive anything of value by way of admissions, without first
having obtained such a certificate or after such certificate has been
canceled; and no person shall receive any license from any authority
within the state to engage in any such business without first having
obtained such a certificate or after such certificate has been canceled.
The engaging in the business of selling or leasing tangible personal
property or services or as a dealer, as defined in this chapter, or the
engaging in leasing, renting, or letting of or granting licenses in living
quarters or sleeping or housekeeping accommodations in hotels,
apartment houses, roominghouses, tourist or trailer camps, or real
property as hereinbefore defined, or the engaging in the business of
selling or receiving anything of value by way of admissions, without
such certificate first being obtained or after such certificate has been
canceled by the department is prohibited. The failure or refusal of any
person, firm, copartnership, or corporation to so qualify when required
hereunder is a misdemeanor of the second degree, punishable as
provided in s. 775.082, s. 775.083, or s. 775.084, or subject to injunctive
proceedings as provided by law.

3E

country;
(d) Manufactures, refines, produces, or compounds any special fuel
within this state and sells such fuel at wholesale, retail, or otherwise
within this state;

_ ___ _ ____ __ __I

SOF REPRESENTATIVES October 1, 1987

(2) Effective July 1, 1988, subsection (3) of section 212.18, Florida
Statutes, 1986 Supplement, as further amended by section 92 of
chapter 87-6 and section 60 of chapter 87-101, Laws of Florida, is
amended to read:
212.18 Administration of law; rules and regulations.-
(3) Every person desiring to engage in or conduct business in this
state as a dealer, as defined in this chapter, or to lease, rent, or let or
grant licenses in living quarters or sleeping or housekeeping accom-
modations in hotels, apartment houses, roominghouses, tourist or
trailer camps, or real property, as defined in this chapter, and every
person who sells or receives anything of value by way of admissions,
shall file with the department an application for a certificate of
registration for each place of business, showing the names of the
persons who have interests in such business and their residences, the
address of the business, and such other data as the department may
reasonably require. The application shall be made to the department
before the person, firm, copartnership, or corporation may engage in
such business; and it shall be accompanied by a registration fee of $5.
However, no registration fee is required to accompany an application
to engage in or conduct business or make mail order sales. The
department, upon receipt of such application, will grant to the
applicant a separate certificate of registration for each place of
business, which certificate may be canceled by the department or its
designated assistants for any failure by the certificateholder to comply
with any of the provisions of this chapter. The certificate shall not be
assignable and shall be valid only for the person, firm, copartnership,
or corporation to which issued; and such certificate shall be placed in a
conspicuous place in the business or businesses for which it is issued
and shall be so displayed at all times. No person shall engage in
business as a dealer or in leasing, renting, or letting of or granting
licenses in living quarters or sleeping or housekeeping accommoda-
tions in hotels, apartment houses, roominghouses, tourist or trailer
camps, or real property as hereinbefore defined, nor shall any person
sell or receive anything of value by way of admissions, without first
having obtained such a certificate or after such certificate has been
canceled; and no person shall receive any license from any authority
within the state to engage in any such business without first having
obtained such a certificate or after such certificate has been canceled.
The engaging in the business of selling or leasing tangible personal
property or series or as a dealer, as defined in this chapter, or the
engaging in leasing, renting, or letting of or granting licenses in living
quarters or sleeping or housekeeping accommodations in hotels,
apartment houses, roominghouses, tourist or trailer camps, or real
property as hereinbefore defined, or the engaging in the business of
selling or receiving anything of value by way of admissions, without
such certificate first being obtained or after such certificate has been
canceled by the department is prohibited. The failure or refusal of any
person, firm, copartnership, or corporation to so qualify when required
hereunder is a misdemeanor of the first degree, punishable as provided
in s. 775.082, s. 775.083, or s. 775.084, or subject to injunctive
proceedings as provided by law.
Section 21. Section 212.61, Florida Statutes, as amended by chapter
87-6, Laws of Florida, is amended to read:
212.61 Definitions.-As used in this part, the term:
(1) "Dealer" means any person who holds a valid license as a dealer
of special fuel, issued by the department pursuant to s. 206.89, and
who:
(a) Imports and sells at wholesale, retail, or otherwise within this
state any special fuel;
(b) Imports, or causes to be imported, and withdraws for use within
this state by himself or others any special fuel from the tank car,
truck, or other original container or package in which it was imported
into this state;
(c) Exports special fuel from this state to another state or foreign

JOURNAL OF THE HOUSE OF REPRESENTATIVES

(e) Imports into this state from any other state or foreign country, or
receives by any means into this state and keeps in storage in this state
for a period of 24 hours or more after the fuel loses interstate character
as a shipment in interstate commerce, any special fuel which is
intended to be used in this state;
(f) Is primarily liable under the special fuel tax laws of this state for
the payment of special fuel taxes;
(g) Purchases or receives in this state special fuel in bulk quantities
for resale to service stations, to a user or another dealer, or to the
ultimate consumer for nontaxable consumption upon which the tax has
not been paid; or
(h) Has both a taxable use and nontaxable consumption of the same
special fuel in this state. However, this paragraph does not require
that a person be a dealer when his only purchases of special fuel are
delivered into reservoirs attached to motor vehicles to fuel internal
combustion engines attached to such motor vehicles.
(2) "Refiner," "importer," or "wholesaler" means any person who
holds a valid license as a refiner, importer, or wholesaler, as defined in
s. 206.01, of motor fuel, issued by the department pursuant to
ss. 206.02 and 206.03.
(3) "Retail dealer" means any person who is licensed pursuant to
chapter 206 to sell motor fuel or special fuel at retail to the general
public at posted retail prices.
The definitions contained in s. 212.02(2), (5), (8), (11), (13), (16), (17),
(18), (19), (20), (22), (24) and (25) 212.02(34), (5 () (1 ( 8) ,
9 (2% (2l4 (23) a(25) (27 and ( 8 apply to the same terms as used
in this part.
Section 22. Subsection (1) of section 32 and sections 38 and 109 of
chapter 87-6, Laws of Florida, as amended by chapter 87-101, Laws of
Florida, are hereby repealed.
Section 23. Effective upon this act becoming a law, section 47 of
chapter 87-6, Laws of Florida, as amended by chapter 87-101, Laws of
Florida, is hereby repealed.
Section 24. Section 212.235, Florida Statutes, as created by chapter
87-6, Laws of Florida, and amended by chapter 87-101, Laws of
Florida, is hereby repealed.
Section 25. Paragraph (d) of subsection (1) and paragraph (d) of
subsection (2) of section 215.32, Florida Statutes, as created by chapter
87-247, Laws of Florida, are hereby repealed.
Section 26. Subsection (1) of section 201.02, Florida Statutes, 1986
Supplement, as amended by chapter 87-6, Laws of Florida, is amended
to read:
201.02 Tax on deeds and other instruments relating to real property
or interests in real property.-
(1) On deeds, instruments, or writings whereby any lands, tene-
ments, or other real property, or any interest therein, shall be granted,
assigned, transferred, or otherwise conveyed to, or vested in, the
purchaser or any other person by his direction, on each $100 of the
consideration therefore the tax shall be 50 55 cents. When the full
amount of the consideration for the execution, assignment, transfer, or
conveyance is not shown in the face of such deed, instrument,
document, or writing, the tax shall be at the rate of 50 55 cents for
each $100 or fractional part thereof of the consideration therefore.
Section 27. Section 201.15, Florida Statutes, as amended by chapters
87-6 and 87-96, Laws of Florida, is amended to read:
201.15 Distribution of taxes collected.-All taxes collected under the
provisions of this chapter shall be distributed as follows:
(1) Sixty-four and eight-tenths Sixty and eight tenths percent of the
total taxes collected under the provisions of this chapter shall be paid
into the State Treasury to the credit of the General Revenue Fund of
the state, to be used and expended for the purposes for which the
General Revenue Fund was created and exists by law.
(2) Twelve and five-tenths Eleven and eight tenths percent of the

total taxes collected under the provisions of this chapter shall be paid
into the State Treasury to the credit of the Land Acquisition Trust

Fund. Sums deposited in such fund pursuant to this subsection may be
used for any purpose for which funds deposited in the Land Acquisition
Trust Fund may lawfully be used and may be used to pay the cost of
the collection and enforcement of the tax levied by this chapter.
(3) Three and one-tenth percent of the total taxes collected under the
provisions of this chapter shall be paid into the State Treasury to the
credit of the Land Acquisition Trust Fund. Moneys deposited in the
trust fund pursuant to this section shall be used for the following
purposes:
(a) Sixty percent of the moneys shall be used to acquire coastal lands
or to pay debt service on bonds issued to acquire coastal lands; and
(b) Forty percent of the moneys shall be used to develop and manage
lands acquired with moneys from the Land Acquisition Trust Fund.
(4) Nine and eight-tenths Nine and two tenths percent of the total
taxes collected under the provisions of this chapter shall be paid into
the State Treasury to the credit of the Water Management Lands Trust
Fund. Sums deposited in that fund may be used for any purpose
authorized in s. 373.59 and may be used to pay the cost of the
collection and enforcement of the tax levied by this chapter.
(5) Six percent of the total taxes eolleeted under the provisions of this
chapter shall be paid into the State Treasury to the credit ef the State
Infrastructure Tirust Fund.

(5)(6 Nine and eight-tenths Nine and two tenths percent of the total
taxes collected under the provisions of this chapter shall be paid into
the State Treasury to the credit of the Conservation and Recreation
Lands Trust Fund to carry out the purposes set forth in s. 253.023.
Section 28. Paragraph (b) of subsection (1) of section 206.87, Florida
Statutes, as created by chapter 87-6, Laws of Florida, is hereby repealed.
Section 29. Subsection (3) of section 206.875, Florida Statutes, as
created by chapter 87-6, Laws of Florida, is hereby repealed.
Section 30. Section 207.026, Florida Statutes, as amended by
chapters 87-6 and 87-198, Laws of Florida, is amended to read:
207.026 Allocation of tax.-All moneys derived from the taxes and
fees imposed by this chapter shall be paid into the State Treasury by
the department for deposit in the Gas Tax Collection Trust Fund, from
which the following transfers shall be made: After withholding $50,000
from the proceeds therefrom, to be used as a revolving cash balance,
and the amount of funds necessary for the administration and
enforcement of this tax, all other moneys shall be transferred in the
same manner and for the same purpose as provided in ss. 206.41,
206.45, 206.60, 206.605, 206.875, and 212.69.
Section 31. Subsection (3) of section 57.071, Florida Statutes, as
created by chapter 87-6, Laws of Florida, is hereby repealed.
Section 32. Subparagraph 3. of paragraph (d) of subsection (3) of
section 57.111, Florida Statutes, as created by chapter 87-6, Laws of
Florida, is hereby repealed.
Section 33. Paragraph (b) of subsection (1) of section 120.57, Florida
Statutes, 1986 Supplement, as amended by chapters 87-6 and 87-385,
Laws of Florida, and as amended and reenacted by chapter 87-54, Laws
of Florida, is amended to read:
120.57 Decisions which affect substantial interests.-The provisions
of this section apply in all proceedings in which the substantial
interests of a party are determined by an agency, unless such
proceedings are exempt pursuant to subsection (5). Unless waived by
all parties, subsection (1) applies whenever the proceeding involves a
disputed issue of material fact. Unless otherwise agreed, subsection (2)
applies in all other cases.
(1) FORMAL PROCEEDINGS.-
(b) In any case to which this subsection is applicable, the following
procedures apply:

1. A request for a hearing shall be granted or denied within 15 days
of receipt.

October 1, 1987

53

54 JOURNAL OF THE HOUSE:

2. All parties shall be afforded an opportunity for a hearing after
reasonable notice of not less than 14 days; however, the 14-day notice
requirement may be waived with the consent of all parties. In a
preliminary hearing for the revocation of parole, no less than 7 days'
notice shall be given. In a hearing involving a student disciplinary
suspension or expulsion conducted by an educational unit, the 14-day
notice requirement may be waived by the agency head or the hearing
officer without the consent of the parties. The notice shall include:
a. A statement of the time, place, and nature of the hearing.
b. A statement of the legal authority and jurisdiction under which
the hearing is to be held.
c. A reference to the particular sections of the statutes and rules
involved.
d. Except for any hearing before an unemployment compensation
appeals referee, a short and plain statement of the matters asserted by
the agency and by all parties of record at the time notice is given. If
the agency or any party is unable to state the matters in sufficient
detail at the time initial notice is given, the notice may be limited to a
statement of the issues involved, and thereafter, upon timely written
application, a more definite and detailed statement shall be furnished
not less than 3 days prior to the date set for the hearing.
3. Except for any proceeding conducted as prescribed in s. 120.54(4);
or s. 120.56, or f 10.575()(b), a petition or request for a hearing
under this section shall be filed with the agency. If the agency elects to
request a hearing officer from the division, it shall so notify the
division within 15 days of receipt of the petition or request. When the
Florida Land and Water Adjudicatory Commission receives a notice of
appeal pursuant to s. 380.07, the commission shall notify the division
within 60 days of receipt of the notice of appeal if the commission
elects to request the assignment of a hearing officer. On the request of
any agency, the division shall assign a hearing officer with due regard
to the expertise required for the particular matter. The referring
agency shall take no further action with respect to the formal
proceeding, except as a party litigant, as long as the division has
jurisdiction over the formal proceeding. Any party may request the
disqualification of the hearing officer by filing an affidavit with the
division prior to the taking of evidence at a hearing, stating the
grounds with particularity.
4. All parties shall have an opportunity to respond, to present
evidence and argument on all issues involved, to conduct cross-exami-
nation and submit rebuttal evidence, to submit proposed findings of
facts and orders, to file exceptions to any order or hearing officer's
recommended order, and to be represented by counsel. When appropri-
ate, the general public may be given an opportunity to present oral or
written communications. If the agency proposes to consider such
material, then all parties shall be given an opportunity to cross-exam-
ine or challenge or rebut it.
5. All pleadings, motions, or other papers filed in the proceeding
must be signed by a party, the party's attorney, or the party's qualified
representative. The signature of a party, a party's attorney, or a
party's qualified representative constitutes a certificate that he has
read the pleading, motion, or other paper and that, to the best of his
knowledge, information, and belief formed after reasonable inquiry, it
is not interposed for any improper purposes, such as to harass or to
cause unnecessary delay or for frivolous purpose or needless increase
in the cost of litigation. If a pleading, motion, or other paper is signed
in violation of these requirements, the hearing officer, upon motion or
his own initiative, shall impose upon the person who signed it, a
represented party, or both, an appropriate sanction, which may include
an order to pay the other party or parties the amount of reasonable
expenses incurred because of the filing of the pleading, motion, or
other paper, including a reasonable attorney's fee.
6. The record in a case governed by this subsection shall consist only
of:

a. All notices, pleadings, motions, and intermediate rulings;
b. Evidence received or considered;
c. A statement of matters officially recognized;

_ ___ _ ___ __ __I_

report.
14. In any application for a consumptive use permit pursuant to part
II of chapter 373, the water management district on its own motion
may, or, at the request of the applicant for the permit, shall, refer the

E

OF REPRESENTATIVES October 1, 1987

d. Questions and proffers of proof and objections and rulings thereon;
e. Proposed findings and exceptions;
f. Any decision, opinion, proposed or recommended order, or report
by the officer presiding at the hearing;
g. All staff memoranda or data submitted to the hearing officer
during the hearing or prior to its disposition, after notice of the
submission to all parties, except communications by advisory staff as
permitted under s. 120.66(1), if such communications are public
records;
h. All matters placed on the record after an ex parte communication
pursuant to s. 120.66(2); and
i. The official transcript.
7. The agency shall accurately and completely preserve all testimony
in the proceeding, and, on the request of any party, it shall make a full
or partial transcript available at no more than actual cost. In any
proceeding before a hearing officer initiated by a consumptive use
permit applicant pursuant to subparagraph 14., the applicant shall
bear the cost of accurately and completely preserving all testimony and
providing full or partial transcripts to the water management district.
At the request of any other party, full or partial transcripts shall be
provided at no more than cost.
8. Findings of fact shall be based exclusively on the evidence of
record and on matters officially recognized.
9. Except as provided in subparagraph 12., the hearing officer shall
complete and submit to the agency and all parties a recommended
order consisting of his findings of fact, conclusions of law, interpreta-
tion of administrative rules, and recommended penalty, if applicable,
and any other information required by law or agency rule to be
contained in the final order. The agency shall allow each party at least
10 days in which to submit written exceptions to the recommended
order.
10. The agency may adopt the recommended order as the final order
of the agency. The agency in its final order may reject or modify the
conclusions of law and interpretation of administrative rules in the
recommended order, but may not reject or modify the findings of fact
unless the agency first determines from a review of the complete
record, and states with particularity in the order, that the findings of
fact were not based upon competent substantial evidence or that the
proceedings on which the findings were based did not comply with
essential requirements of law. The agency may accept the recom-
mended penalty in a recommended order, but may not reduce or
increase it without a review of the complete record and without stating
with particularity its reasons therefore in the order, by citing to the
record in justifying the action. When there is an appeal, the court in its
discretion may award reasonable attorney's fees and costs to the
prevailing party if the court finds that the appeal was frivolous,
meritless, or an abuse of the appellate process or that the agency
action which precipitated the appeal was a gross abuse of the agency's
discretion.
11. If the hearing officer assigned to a hearing becomes unavailable,
the division shall assign another hearing officer who shall use any
existing record and receive any additional evidence or argument, if
any, which the new hearing officer finds necessary.
12. A hearing officer who is a member of an agency head may
participate in the formulation of the final order of the agency, provided
he has completed all his duties as hearing officer.
13. In any application for a license or merger pursuant to title
XXXVIII which is referred by the agency to the division for hearing
pursuant to this section, the hearing officer shall complete and submit
to the agency and to all parties a written report consisting of findings
of fact and rulings on evidentiary matters. The agency shall allow each
party at least 10 days in which to submit written exceptions to the

October 1, 1987 JOURNAL OF THE HOUSE

matter to the division for the appointment of a hearing officer to
conduct a hearing under this section.

Section 34. Paragraph (b) of subsection (1) of section 120.575, Florida
Statutes, as created by chapter 87-6, Laws of Florida, and amended by
chapter 87-101, Laws of Florida, is hereby repealed.
Section 35. Subsection (5) of section 120.65, Florida Statutes, as
created by chapter 87-6, Laws of Florida, and amended by chapter
87-101, Laws of Florida, is hereby repealed.
Section 36. Any person who, before April 15, 1988, was required by
s. 212.13, Florida Statutes, as amended by chapters 87-6 and 87-101,
Laws of Florida, to keep records relating to the sale or use of services,
shall continue to keep such records for a period of 3 years, and such
records shall be available for inspection in the same manner as records
kept pursuant to s. 212.13, Florida Statutes. The failure to keep such
records or to allow their inspection as required by this section is subject
to the same penalties provided in s. 212.13, Florida Statutes.
Section 37. The repeal by Part I of this act of any statute or part of a
statute does not affect the prosecution or continued prosecution of any
cause of action that accrued prior to April 15, 1988.
Section 38. If Part I of this act takes effect as specified herein, the
amendments to or repeal of statute sections or portions thereof contained
in Part I shall prevail over any conflicting amendments contained in
Part II of this act.
Section 39. Part I of this act shall take effect April 15, 1988, except
as otherwise provided herein.
Section 40. (1) Part I of this act is repealed effective April 15, 1988, if
an affirmative vote is cast by a majority of the electors of the state voting
in a referendum to be held on March 8, 1988, concurrent with the
presidential primary election, at which the following question shall be
placed on the ballot:

SALES TAX QUESTION
Do you wish to retain the sales tax on services and the increase in the
documentary stamp tax, which were adopted by the Florida Legislature
in 1987, instead of increasing the general sales tax from 5 percent to 6
percent on goods, admissions, and rentals?
(2) It is the intent of the Legislature that an affirmative vote on the
question by a majority of the electors voting in such referendum shall
repeal the provisions of Part I of this act as provided in subsection (1). If
a court of competent jurisdiction rules that such an affirmative vote may
not act to repeal the provisions of Part I of this act, the results of the
referendum shall be regarded as a straw poll, and the provisions of Part
I of this act shall continue to be in force as provided therein.
(3) This section shall take effect upon becoming a law.
Section 41. (1) On March 8, 1988, concurrent with the presidential
preference primary election, there shall be held in all of the counties of
the state a referendum to elicit the views of the public on a matter of
vital interest to the State of Florida.
(2) The following question shall be placed upon the ballot on March 8:

SALES TAX QUESTION
Do you wish to retain the sales tax on services and the increase in the
documentary stamp tax, which were adopted by the Florida Legislature
in 1987, instead of increasing the general sales tax from 5 percent to 6
percent on goods, admissions, and rentals?
(2) It is the intent of the Legislature that if the provisions of section 40
of this act are held to be invalid, the invalidity shall not affect the
provisions of this section, and to that end the provisions of this section
are declared to be severable.
(3) This section shall take effect upon becoming a law.

PART II
(renumber subsequent sections)

THE SPEAKER PRO TEMPORE IN THE CHAIR

SOF REPRESENTATIVES 55

Rep. Simon moved the adoption of the amendment, which was
adopted.

Representative Simon offered the following title amendment:
Amendment 2-On page 1, line 2, after the semicolon insert:

amending ss. 212.03, 212.031, 212.04, 212.05, 212.06, 212.08, and
212.12, F.S.; increasing the tax on sales, use and other transactions;
amending s. 212.055, F.S.; conforming provisions relating to the
charter county transit system surtax and the local government
infrastructure surtax; amending s. 218.61, F.S., relating to transfers
into the Local Government Half-cent Sales Tax Clearing Trust Fund,
to conform; repealing s. 212.059, F.S., which provides for levy of the
tax on sales, use and other transactions on the sale and use of services;
repealing s. 212.0591, F.S., which provides rules of construction with
respect to said tax; repealing s. 212.0592, F.S., which provides
exemptions from said tax; repealing s. 212.0593, F.S., which provides
for administration of the exemption for services sold in this state for
use outside this state; repealing s. 212.0594, F.S., which provides
special provisions applicable to the tax on construction services;
repealing s. 212.0595, F.S., which provides special provisions applica-
ble to tax on advertising; repealing s. 212.0598, F.S., which specifies
conditions under which certain air carriers may elect to be subject to
the tax on services and tangible personal property; amending s. 212.02,
F.S.; revising definitions; amending s. 212.05, F.S.; providing for
imposition of tax on certain cleaning, laundry, and garment services;
amending ss. 212.031, 212.06, 212.07, 212.08, 212.095, 212.18, and
212.61, F.S.; specifying that personal and professional services are
exempt unless specifically taxed; revising and conforming language;
specifying application of tax to certain persons who manufacture
factory-built buildings; repealing s. 212.11(1)(d), F.S., which authorizes
quarterly returns for certain dealers registered as service providers;
repealing s. 32(1) of chapter 87-6, Laws of Florida, relating to
self-accrual of tax for purchasers of services; repealing ss. 38, 47, and
109 of chapter 87-6, Laws of Florida, relating to construction with
respect to disclosure of privileged information, a study of service
transactions by the Department of Revenue, and a tax hot-line;
repealing ss. 212.235 and 215.32(1)(d) and (2)(d), F.S.; eliminating the
State Infrastructure Trust Fund; amending s. 201.02, F.S.; reducing
the tax on deeds and other instruments relating to real property;
amending s. 201.15, F.S.; revising the distribution of the tax; repealing
ss. 206.87(1)(b) and 206.875(3), F.S.; removing the levy of an additional
tax on special fuels; amending s. 207.026, F.S., relating to allocation of
the tax on commercial motor vehicles, to conform; repealing
s. 57.071(3), F.S., which provides for the inclusion of sales or use tax on
legal services within court costs; repealing s. 57.111(3)(d)3., F.S.,
which expands the definition of "small business party" with respect to
civil actions or administrative proceedings initiated by state agencies
to include certain persons contesting the legality of any assessment of
tax imposed for the sale or use of services; repealing s. 120.575(1)(b),
F.S., which provides procedures for taxpayer contest proceedings to
contest the legality of any assessment of the tax on services; amending
s. 120.57, F.S., to conform; repealing s. 120.65(5), F.S., which provides
for the appointment of a panel to be the hearing officer in such
taxpayer contest proceedings; providing certain recordkeeping re-
quirements and providing for the application of penalties; providing for
contingent repeal; providing for referenda; providing intent; providing
effective dates;

Rep. Simon moved the adoption of the amendment, which was
adopted without objection.

Representative Simon offered the following amendment:

Amendment 3 (applies to Amendment 1)-On page 70, line 18,
and page 71, line 12, after "tax" insert: and the special fuel tax
Rep. Simon moved the adoption of the amendment. Pending
consideration thereof, further consideration was temporarily deferred.
Subsequently, the amendment was abandoned.

Representative Simon offered the following amendment:
Amendment 4--On page 34, line 26, through page 35, line 8, strike
all of said lines (renumber subsequent sections)

3E

56 JOURNAL OF THE HOUSi

Rep. Simon moved the adoption of the amendment, which was
adopted without objection.
Representative Simon offered the following title amendment:
Amendment 5-On page 2, line 28, strike "providing for a straw
ballot"
Rep. Simon moved the adoption of the amendment, which was
adopted without objection.
Representatives Silver, Tobin, Lippman, Ostrau, Gonzalez-Quevedo,
Friedman, Kelly, Bloom, Young and Mackenzie offered the following
amendment:
Amendment 6-On page 22, line 29, insert before the period:, and
except security guard services provided for residential property
Rep. Silver moved the adoption of the amendment, which was
adopted.
Representatives Friedman, Logan, Gordon, Abrams, Burke and
Reddick offered the following amendment:
Amendment 7-On page 35, between lines 8 & 9, insert: Section 20.
Subsection (4) of section 125.0167, Florida Statutes, as created by
chapter 83-220, Laws of Florida, is hereby repealed.
Section 21. Section 3 of chapter 83-220, Laws of Florida, is amended
to read:
Section 3. This act shall take effect October 1, 1983, and the
provisions thereof shall expire and be void and inoperative on October
1, 2010 1993. (renumber subsequent section)
Rep. Friedman moved the adoption of the amendment, which was
adopted without objection.
Representatives Friedman, Logan, Gordon, Abrams and Burke
offered the following title amendment:
Amendment 8-On page 2, line 28, insert after the semicolon:
repealing s. 125.0167(4), F.S., which sunsets effective October 1, 1993,
the discretionary surtax on documents levied by certain counties;
amending section 3 of chapter 83-220, Laws of Florida, to extend until
October 1, 2010, the discretionary surtax on documents levied by
certain counties;
Rep. Friedman moved the adoption of the amendment, which was
adopted without objection.
Representatives Gardner, Lippman, Gonzalez-Quevedo, Gordon and
Friedman offered the following amendment:
Amendment 9-On page 26, lines 18-21, strike all of said lines and
insert: 9. Property used as an integral part of the production of motion
pictures on film or videotape performance of qualified productive
services as defined n e 212.0592(18)(a).
10. Leased, subleased, or rented to a person
Rep. Gardner moved the adoption of the amendment, which was
adopted without objection.
Representatives Gardner and Lippman offered the following title
amendment:
Amendment 10-On page 1, line 23, strike "removing an" and
insert: correcting a cross-reference for the
Rep. Gardner moved the adoption of the amendment, which was
adopted without objection.
Representatives Gardner, Sansom, Lippman, Tobin, Gonzalez-
Quevedo, Kelly, Brown, Clements, Young and Reddick offered the
following amendment:
Amendment 11-On page 18, line 17, insert after "customers":, and
shall issue a resale permit to a dealer primarily engaged in contract
work for a governmental entity described in s. 212.08(6)

15

Rep. Gardner moved the adoption of the amendment, which was
adopted without objection.
Representatives Gardner, Gonzalez-Quevedo, Kelly, Hargrett, Clem-
ents, Reddick, Brown and Jamerson offered the following amendment:

,,,,,,,, -r

which the following transfers shall be made: After withholding $50,000
from the proceeds therefrom, to be used as a revolving cash balance,
the funds for the purpose of conducting the study as set forth in s. 4 of
chapter 80-415, Laws of Florida, and the amount of funds necessary for
the administration and enforcement of this tax, all other moneys shall

OF REPRESENTATIVES October 1, 1987

Amendment 12-On page 15, line 5, strike "(4)" and insert: (4)
Notwithstanding other provisions of this section to the contrary, the
following provisions shall apply with regard to the taxation of road
construction done pursuant to a contract:
(a) For road construction done pursuant to or in furtherance of a
contract with a governmental entity described in s. 212.08(6) or an

exempt entity described in s. 212.08(7)(o) the tax shall be imposed upon
fifty percent of the contract price.
(b) For other road construction, the tax shall be imposed upon one
hundred percent of the contract price.
(c) For purposes of this subsection:
1. "Contract price" means the total consideration paid pursuant to the
contract to construct the road. However, if the contract price includes
building materials upon which the sales or use tax has previously been
paid, "contract price" may be reduced to reflect the value of such
materials and tax.
2. "Road construction" means construction of roads as defined in
s. 334.03(17) and private roads similarly defined and parking lots,
airport landing areas, and helicopter pads.
(d) The prime contractor shall be responsible for self-accruing and
remitting all taxes due pursuant to this subsection. Subcontractors shall
not be required to remit tax.
(e) Prime contractors and subcontractors certified pursuant to
Chapter 337 shall be entitled to obtain a resale permit from the
department to be utilized when purchasing building materials.
(f) This tax shall be in lieu of any tax that would otherwise be
imposed on road construction pursuant to s. 212.06.
(g) The tax imposed pursuant to this subsection shall be due when the
prime contractor is paid. If the contract price is paid in draws or
installments, the amount of tax to be paid with respect to each such
draw or installment, before application of the dealer credit, shall be that
proportion of the tax due on the total contract price which the amount of
the draw or installment bears to the total contract price.
(5) (4) (renumber subsequent subsection)
Rep. Gardner moved the adoption of the amendment, which was
adopted without objection.
Representatives C. F. Jones, Gonzalez-Quevedo and Kelly offered the
following amendment:
Amendment 13 (applies to Amendment 12)-On page 1, line 19,
insert after "212.08(7)(o)": or done for roads dedicated for public use to
a governmental entity on a recorded subdivision plat,
Rep. C. F. Jones moved the adoption of the amendment. Pending
consideration thereof, further consideration was temporarily deferred.
Subsequently, the amendment was abandoned.
Representatives Mackey, Trammell, Sansom, Smith, Mitchell, Kelly,
Drage, Gonzalez-Quevedo, Carpenter, Hargrett, Clements, Langton,
Reddick, Mackenzie, Goode, Jamerson and King offered the following
amendment:
Amendment 14--On page 33, between lines 2 and 3, insert:
Section 17. Paragraph (b) of subsection (1) of section 206.87, Florida
Statutes, as created by chapter 87-6, Laws of Florida, is hereby repealed.
Section 18. Subsection (3) of section 206.875, Florida Statutes, as
created by chapter 87-6, Laws of Florida, is hereby repealed.
Section 19. (1) Section 207.026, Florida Statutes, as amended by
chapter 87-6, Laws of Florida, is amended to read:
207.026 Allocation of tax.-All moneys derived from the taxes and
fees imposed by this chapter shall be paid into the State Treasury by
the department for deposit in the Gas Tax Collection Trust Fund, from

JOURNAL OF THE HOUSE OF REPRESENTATIVES

be transferred in the same manner and for the same purpose as
provided in ss. 206.41, 206.45, 206.60, 206.605, 206.875, and 212.69.
(2) It is the intent of the Legislature that the amendment of
s. 207.026, Florida Statutes, by this act shall not affect the amendment
of said section by section 13 of chapter 87-198, Laws of Florida, which
is to take effect March 1, 1988.
Section 20. Subsection (1) of section 212.235, Florida Statutes, as
created by chapter 87-6, Laws of Florida, and amended by chapter
87-101, Laws of Florida, is amended to read:
212.235 State Infrastructure Trust Fund; deposits.-
(1) Notwithstanding the provisions of ss. 212.20(1) and 218.61, in
fiscal year 1987-1988 an amount equal to 2 percent, and in each fiscal
year thereafter an amount equal to 5 percent, of the proceeds remitted
pursuant to this part by a dealer, or the sums sufficient to provide the
maximum receipts specified herein, shall be transferred into the State
Infrastructure Trust Fund, which is created in the State Treasury.
"Proceeds" means all funds collected and received by the Department
of Revenue, including any interest and penalties. However, any
receipts of the trust fund, including those received pursuant to s. ss.
201.15(5) and 206.875(3) and interest earned, in excess of $200 million
in fiscal year 1987-1988, and $500 million thereafter, shall revert to
the General Revenue Fund.
Section 21. Paragraph (d) of subsection (2) of section 215.32, Florida
Statutes, as amended by chapter 87-247, Laws of Florida, is amended
to read:
215.32 State funds; segregation.-
(2) The source and use of each of these funds shall be as follows:
(d) The State Infrastructure Fund shall consist of all moneys
received from proceeds earmarked for this fund pursuant to ss. 201.15i
206.875, and 212.235. Such moneys shall only be expended pursuant to
legislative appropriations for infrastructure facilities listed in
s. 212.235(2). (renumber subsequent sections)
Rep. Mackey moved the adoption of the amendment, which was
adopted without objection.
Representatives Mackey, Trammell, Sansom, Smith, Mitchell, Kelly
and Mackenzie offered the following title amendment:
Amendment 15-On page 2, line 19, after "hearings;" and before
"amending" and insert: repealing ss. 206.87(1)(b) and 206.875(3), F.S.;
removing the levy of an additional tax on special fuels; amending
s. 207.026, F.S., relating to allocation of the tax on commercial motor
vehicles, to conform; amending s. 212.235 and s. 215.32, F.S., relating
to the State Infrastructure Trust Fund, to conform;
Rep. Mackey moved the adoption of the amendment, which was
adopted without objection.
Representatives Ostrau, Tobin, Gonzalez-Quevedo, Kelly, Clements,
Young, Reddick and King offered the following amendment:
Amendment 16-On page 19, line 29, insert before the period: ,
except grave excavation services described in SIC 1799
Rep. Ostrau moved the adoption of the amendment, which was
adopted without objection.
Representatives Drage, Lippman, Kelly, Hargrett, Bloom, Clements,
Langton, Reddick, King and Jamerson offered the following amend-
ment:
Amendment 17-On page 30, lines 11-18, strike all of said lines and
insert: estate agent is responsible for preparing and submitting an
invoice to the closing agent at closing which discloses the real estate
agent's full compensation and which declares the amount of the
compensation upon which the tax is due at closing. Failure to properly
invoice the tax shall result in the real estate agent being deemed the
dealer, and shall absolve the closing agent of responsibility for collection
of the tax. The dealer shall submit the invoice to the department along
with the tax as provided in s. 212.12.

Rep. Drage moved the adoption of the amendment, which was
adopted without objection.

Representatives Silver, Tobin, Lippman, Deutsch, Friedman, Kelly,
Bloom, Young, Mackenzie, Ostrau, Goode, Ascherl, Jamerson and King
offered the following amendment:
Amendment 18-On page 11, line 12, insert after "212.08(7)(o): or a
residential condominium association or residential cooperative associa-
tion for improvements to the common elements or association property
Rep. Silver moved the adoption of the amendment, which was
adopted without objection.
Representatives Silver, Tobin, Lippman, Gordon, Deutsch, Fried-
man, Kelly, Young, Mackenzie and Ostrau offered the following
amendment:
Amendment 19--On page 13, line 15, after "212.08(7)(o)," insert: or
a residential condominium association or a residential cooperative
association for construction related to the common elements or associa-
tion property
Rep. Silver moved the adoption of the amendment, which was
adopted without objection.
Representatives Silver, Lippman, Ascherl, Tobin, Gonzalez-Quevedo,
Shelley, Kelly, Gordon, Deutsch, Friedman, Bloom, Young, Mackenzie,
Ostrau, and Goode offered the following amendment:
Amendment 20-On page 22, lines 24-26, strike all of said lines and
insert "(p) Pest control and maintenance services related to dwellings
and other buildings as described in SIC Group Number 734, unless the
services are provided for residential property." and on page 19, line 25,
strike all of said lines and insert: in SIC Group Number 078, unless the
services are provided for residential property; and animal specialty
services as
Rep. Silver moved the adoption of the amendment, which was
adopted.
Representatives Silver, Tobin, Lippman, Deutsch, Friedman, Kelly,
Bloom, Young, Mackenzie and Ostrau offered the following amend-
ment:
Amendment 21-On page 22, line 29, after "7383" insert: and
except swimming pool cleaning and maintenance services described in
SIC 7389 and provided to residential property
Rep. Silver moved the adoption of the amendment, which was
adopted.
Subsequently, on motion by Rep. B. L. Johnson, the House
reconsidered the vote by which Amendment 21 was adopted. The
question recurred on the adoption of the amendment, which failed of
adoption.
Representatives Liberti, Tobin, Cosgrove, Gonzalez-Quevedo,
Deutsch, Morse, Bloom, Young and Ostrau offered the following
amendment:
Amendment 22-On page 15, line 26, insert: Section 5. Section
212.0595, Florida Statutes, as created by chapter 87-6, Laws of Florida,
and amended by chapters 87-72 and 87-101, Laws of Florida, is hereby
repealed. (renumber subsequent sections)
Rep. Liberti moved the adoption of the amendment.

studio design services, services of national sales representatives, market
research services, security services, and music license fees.
Rep. Mackenzie moved the adoption of the substitute amendment,
which failed of adoption. Rep. Titone was recorded as voting Yea.
The question recurred on the adoption of Amendment 22, which
failed of adoption.
Representatives Messersmith, Cosgrove, Friedman, Morse, Souto,
Lombard, Tobin, Sansom and Young offered the following amendment:
Amendment 23 (prefile 66)-On page 34, line 26, insert the
following: Section 19. Paragraphs (mm), (nn), (oo), (pp), and (qq) are
added to subsection (1) of section 216.011, Florida Statutes, and
paragraph (q) of said subsection of said section is amended to read:
216.011 Definitions.-
(1) For the purpose of fiscal affairs of the state, appropriations act,
legislative budgets, and approved budgets, each of the following terms
has the meaning indicated:
(q) "Grants and aids" means contributions to units of governments or
nonprofit organizations to be used for one or more specified purposes
or, activities, or facilities. Funds appropriated under this category may
be advanced.
(mm) "Fixed capital outlay project" means the work and materials
associated with the planning, design, construction, equipping, replace-
ment, or acquisition of a single building or an institution or campus or
the planning, research, and acquisition of a parcel of continuous land.
(nn) "Fixed capital outlay maintenance project" means the work and
materials associated with the planning, design, construction, replace-
ment, or repair of a single building system on a campuswide,
districtwide, or agencywide basis or of all building systems in a single
building or facility.
(oo) "Implementing act" means any act of the Legislature which is
required to implement the general appropriations act for the fiscal
period of the appropriations and which does not appropriate or allocate
funds nor qualify or restrict the general appropriations act.
(pp) "Proviso" means language that qualifies or restricts a specific
appropriation and which can be logically and directly related to the
specific appropriation.
Section 20. Subsections (7) and (12) of section 216.031, Florida
Statutes, as amended by section 5 of chapter 87-137, Laws of Florida,
are hereby repealed.
Section 21. Section 216.046, Florida Statutes, is amended to read:
216.046 Governor's supplemental recommendations.-The Governor
may make supplemental revenue and appropriation recommendations
to the Legislature at least 45 days prior to the annual session in any
even-numbered year. The supplemental recommendations shall in-
clude the information required in ss. 216.162-216.168 and shall use as
a base the most recent legislative appeopriations aet or approved
operating budget.
Section 22. Section 216.081, Florida Statutes, is amended to read:
216.081 Data on legislative expenses.--
(1) On or before November 1 in each even-numbered year, in
sufficient time to be included in the Governor's recommended budget
report to the Legislature, estimates of the financial needs of the
legislative branch during the ensuring biennium shall be furnished to
the Governor pursuant to chapter 11.
(2) All of the data relative to the legislative branch shall be for
information and guidance in estimating the total financial needs of the
state for the ensuing biennium; but none of these estimates shall be
subject to revision or review by the Governor, and they must be
included in his recommended budget report to the Legislature.
Section 23. Section 216.121, Florida Statutes, is amended to read:

216.121 Information to be furnished to the Executive Office of the
Governor.-

October 1, 1987

(1) Each state agency, upon request, shall promptly furnish to the
Executive Office of the Governor any information in relation to the
affairs or activities of such agency in such form as the office may
prescribe. The office shall have authority to examine and inspect any
and all records and programs of any such state agency.
(2) Each state agency the head of which is appointed by the Governor
shall, upon request by the Governor, furnish through the legislative
appropriations system/planning and budgeting subsystem to the Execu-
tive Office of the Governor such alternative budgets as may be required.
The legislative appropriations system/planning and budgeting subsys-
tem shall be available to said agencies at any time the Governor requests
such alternative budgets be developed.
Section 24. Subsection (1) of section 216.163, Florida Statutes, is
amended to read:
216.163 Governor's recommended budget; form and content.-
(1) The Governor's recommended budget shall be referenced to the
legislative budget requests prescribed in ss. 216.031 and 216.043 and
shall be distinctly separated into two sections: Section One of the
budget shall be entitled "Operations," and Section Two shall be
entitled "Fixed Capital Outlay." Section Two shall display on a
project-by-project basis all fixed capital outlay projects and all fixed
capital outlay maintenance projects, whether the appropriation is to a
state agency, some other unit of government, a nonprofit organization, or
a political subdivision of the state.
Section 25. Section 216.167, Florida Statutes, is amended to read:
216.167 Governor's recommendations.-The Governor's recommen-
dations shall include a financial schedule which shall provide:
(1) His estimate of the recommended recurring revenues available in
the Working Capital Fund, the State Infrastructure Fund, and the
General Revenue Fund.
(2) His estimate of the recommended nonrecurring revenues avail-
able in the Working Capital Fund, the State Infrastructure Fund, and
the General Revenue Fund.
(3) His recommended recurring and nonrecurring appropriations
from the Working Capital Fund, the State Infrastructure Fund, and the
General Revenue Funds ai4d the Federa! Revenue Sharing Fund.
(4) His estimates of any interfund loans or temporary obligations of
the Working Capital Fund or trust funds, which loans or obligations
are needed to implement his recommended budget.
(5) His estimates of the debt service and reserve requirements for any
recommended new bond issues or reissues and his recommended debt
service appropriations for all outstanding fixed capital outlay bond
issues.
Section 26. Section 216.175, Florida Statutes, is created to read:
216.175 Operating budgets; specific appropriation proviso.-
When a specific appropriation for state agency operations consists of a
series of particular allocations and a particular allocation is equal to or
greater than $50,000 all such allocations shall be enumerated in a
proviso associated with the specific appropriation, except that a specific
appropriation that consists of a series of particular allocations deter-
mined pursuant to a process established by law and designed to
prioritize needs may not be enumerated in a proviso unless an allocation
that has not been subject to such process is included in the specific
appropriation.
Section 27. Subsection (1) of section 216.181, Florida Statutes, as
amended by section 58 of Chapter 87-224, Laws of Florida, is amended
to read:
216.181 Approved budgets for operations and fixed capital outlay.-
(1) On or before the fifth day before the end of the period allowed by
law for veto consideration in July I- of any year in which an
appropriation is made, the chairmen of the legislative appropriations
committees shall jointly transmit a statement of intent and all
supporting data and information associated with the general appro-

priations act, including performance and workload measures as
appropriate and the official list of General Revenue Fund appropria-

JOURNAL OF THE HOUSE OF REPRESENTATIVES

tions determined in consultation with the Executive Office of the
Governor to be nonrecurring, to the Executive Office of the Governor,
the Comptroller, the Auditor General, and each state agency. The
statement of intent and the supporting data and information associated
with the general appropriations act shall may not amend or correct any
provision in the General Appropriations Act, but may provide
additional direction and explanation to the Executive Office of the
Governor, the Administration Commission, and each affected state
agency relative to the purpose, objectives, spending philosophy, and
restrictions associated with any specific appropriation category. The
statement of intent shall compare the request of the agency or the
recommendation of the Governor to the funds appropriated for the
purpose of establishing intent in the development of the approved
operating budget. A request for additional explanation and direction
regarding the legislative intent of the General Appropriations Act
during the fiscal year may be made only by and through the Executive
Office of the Governor as is deemed necessary. However, the Comptrol-
ler may also request further clarification of legislative intent pursuant
to his responsibilities related to his preaudit function of expenditures.
Section 28. Subsection (5) of section 216.292, Florida Statutes, is
amended to read:
216.292 Appropriations nontransferable; exceptions.-
(5) The Executive Office of the Governor may approve any transfer
from the Working Capital Fund to the General Revenue Fund provided
such transfer was identified or contemplated by the Legislature in the
original approved operating budget.
Section 29. Paragraph (c) of subsection (1) of section 216.301, Florida
Statutes, is amended to read:
216.301 Appropriations undisbursed balances.-
(1)
(c) Each department shall maintain the integrity of the General
Revenue Fund. Appropriations from the General Revenue Fund for
any state agency contained in the original approved operating budget
may, with the approval of the Executive Office of the Governor, be
transferred to the proper trust fund for disbursement. However, all
transferred general revenue funds which are unexpended on June 30
are subject to the general revenue reversion provision of this chapter.
Section 30. Subsections (2) and (3) of section 235.41, Florida
Statutes, as amended by section 47 of Chapter 87-329, Laws of Florida,
are amended to read:
235.41 Legislative capital outlay budget request.-
(2) The commissioner shall submit to the Governor and to the
Legislature an integrated, comprehensive budget request for educa-
tional facilities construction and fixed capital outlay needs for all
boards, including the Board of Regents, pursuant to the provisions of
s. 235.435 and applicable provisions of chapter 216. Each board,
including the Board of Regents, shall submit to the commissioner a
3-year plan and data required in the development of the annual capital
outlay budget. No further disbursements shall be made from the Public
Education Capital Outlay and Debt Service Trust Fund to a board that
fails to timely submit the required data until such board submits the
data.
(3) The commissioner shall submit an integrated, comprehensive
budget request to the Executive Office of the Governor and to the
Legislature no later than 120 45 days prior to the legislative session
each fiscal year. Notwithstanding the provisions of s. 216.043, the
integrated, comprehensive budget request shall include:
(a) For the Public Education Capital Outlay and Debt Service Trust
Fund and all sinking and investment accounts which are in receipt of
any portion of the revenue sources listed in s. 235.42(2)(a):
1. A schedule for each fund showing the actual beginning cash
balance for each of the 2 prior fiscal years and showing for the current
fiscal year the estimated beginning cash balance and a listing of all
disbursements and receipts.
2. For the budget fiscal year for each fund, the projected beginning

cash balance, a monthly projection of all receipts, and a monthly
projection of all disbursements.

59

3. For the budget fiscal year, necessary forecasting data to enable
the commissioner to prepare and submit a monthly gross receipts tax
forecast, a monthly bond proceeds estimate, the interest rate assump-
tion used in the bond proceeds estimate, a monthly interest earnings
forecast, the interest rate assumption used in the calculation of
interest to be received on the idle balances invested, and any other
reports as deemed necessary by the Legislature.
(b)(4 Recommendations for the priority of expenditure of funds in
the state system of public education, with reasons for the recommended
priorities, and other recommendations which relate to the effectiveness
of the educational facilities construction program.
All items in s. 235.435 shall be part of the legislative budget request
submitted by the commissioner (renumber subsequent section)
Rep. Messersmith moved the adoption of the amendment.

THE SPEAKER PRO TEMPORE IN THE CHAIR

THE SPEAKER IN THE CHAIR

Rep. Martin suggested the absence of a quorum. A quorum of 110
Members was present.
The question recurred on the adoption of Amendment 23 profilee 66),
which failed of adoption. The vote was:
Yeas-38

Amendment 24 profilee 64)-On page 35, line 9, insert: Section 20.
Effective January 1, 1988, sections 212.059, 212.0591, and 212.0595,
Florida Statutes, as created by chapter 87-6, Laws of Florida, and
amended by chapters 87-72 and 87-101, Laws of Florida, are hereby
repealed.
Section 21. Effective January 1, 1988, sections 212.0592 and
212.0593, Florida Statutes, as created by chapter 87-6, Laws of Florida,
are hereby repealed.
Section 22. Effective January 1, 1988, section 212.0594, Florida
Statutes, as created by chapter 87-101, Laws of Florida, is hereby
repealed.
Section 23. Effective January 1, 1988, subsections (22) and (24) of
section 212.02, Florida Statutes, as created by chapter 87-6, Laws of
Florida, are hereby repealed.
Section 24. Effective January 1, 1988, the tax imposed at the rate of 5
percent pursuant to ss. 212.03, 212.031, 212.04, 212.05, 212.06,
212.061, and 212.12. Florida Statutes, except that imposed on motor
fuel or special fuel pursuant to s. 212.05(1)(q), Florida Statutes, and
part II of chapter 212, Florida Statutes, shall be increased from 5
percent to 5.5 percent.
Rep. Renke moved the adoption of the amendment.
The absence of a quorum was suggested. A quorum of 110 members
was present.
The question recurred on the adoption of Amendment 24 (prefile 64),
which failed of adoption. The vote was:
Yeas-45

Pair Vote
I am paired with Rep. Abrams on the adoption of Amendment 24
(prefile 64) to HB 26-B. If he were present, he would vote "Nay" and I
would vote "Yea."
Representative -,uis C. Morse
District 113

Votes after roll call:
Nays to Yvas-Mackey, Crady

Rep. Martin moved the previous question on the bill, which was
agreed to.
Without objection, 49 profiled amendments were abandoned.
On motion by Rep. Gardner, the rules were waived by two-thirds
vote and HB 26-B, as amended, was read the third time by title. On
passage, the vote was:
Yeas-69

Pair Votes
I am paired with Rep. Crotty on the passage of HB 26-B. If he were
present, he would vote "Nay" and I would vote "Yea."
Representative Douglas L. Jamerson
District 55
I am paired with Rep. Dunbar on the passage of HB 26-B. If he were
present, he would vote "Nay" and I would vote "Yea."
Representative Tom Gustafson
District 94
I am paired with Rep. Abrams on the passage of HB 26-B. If he were
present, he would vote "Yea" and I would vote "Nay."
Representative Luis C. Morse
District 113
Votes -after roll call:
Yeas to Nays-Tobiassen
So the bill passed, as amended, and was immediately certified to the
Senate after eingrossment.
Rep. Bankhead moved that HR 18-B be taken up instanter, which
was not agreed to.

The following prayer was offered by Speaker pro tempore Burke:
Our Heavenly Father, we meet again to complete a process of
meeting the needs of the people of this state who elected us. It has been
a difficult task, but as with many legislative tasks, we know that we
are engaged in a process and not in immediately gratifying actions.
Help us Father, to do what is right. And when this process is at its
most difficult time, to be guided by the words of that old African-
American spiritual: "I ain't no ways tired; I come too far from where I
started from. Nobody told mee the road will be easy; but I don't believe
he brought me this far to leave me." Thank You, Father, for this day
and this opportunity to do what is right. Amen.
The following Members were recorded present:

The Journal of October 1 was corrected and approved as follows: On
page 40, column 1, between lines 8 and 9 from top, insert "So the bill
passed and was immediately certified to the Senate."; on page 41, first
line of column 2, show "5" as stricken language; on page 43, column 2,
line 20 from top, after "penalty" insert "shall"; on page 45, column 1,
line 8 from bottom, strike "articles" and insert "services"; on page 59,
column 2, strike "Tobin, Young" as sponsors of Amendment 24 profilee
64)

Introduction and Reference

By Representatives Silver, Bloom, Guber, Lippman, Woodruff,
Saunders, Reaves, Metcalf, Logan, Friedman, Abrams, Simon, Davis,
Frankel, Burke, Liberti, Gonzalez-Quevedo-
HB 9-B-A bill to be entitled An act relating to weapons and
firearms; amending s. 790.25, Florida Statutes, to restrict the carrying
of a firearm or electric weapon or device on or about the person;
providing misdemeanor punishment; providing an effective date.
Rep. Silver moved that HB 9-B be admitted for introduction, the
Speaker having ruled the measure was outside the purview of the Call,
which was agreed to by the required Constitutional two-thirds vote,
and the bill was read the first time by title. On motion by Rep. R. C.
Johnson, the rules were waived by two-thirds vote and HB 9-B was
read the second time by title.
Representatives R. C. Johnson, Clements, Gardner, Silver, Gustaf-
son, Lippman, Burke, Gutman, Friedman, Woodruff, Sanderson,
Mortham and Logan offered the following amendment:
Amendment 1-On page 1, line 11, strike everything after the
enacting clause and insert: Section 1. Section 790.051, Florida
Statutes, is created to read:
790.051 Open carrying of weapons.-
Except as otherwise provided by law, it shall be unlawful for any
person to openly carry on or about his person any firearm or electric
weapon or device; provided, however, that a person may openly carry a
stun gun or non-lethal electric weapon or device designed solely for
defensive purposes, which weapon does not fire a dart or projectile.
Section 2. This act shall take effect upon becoming a law, and shall
stand repealed on July 1, 1988.
Rep. Johnson moved the adoption of the amendment.
Representatives R. C. Johnson and Clements offered the following
amendment to the amendment:
Amendment 1 to Amendment 1-On page 1, line 23, after the
period, insert: Any person violating this section shall be guilty of a
misdemeanor of the second degree punishable as provided for in
s. 775.082, s. 775.083 or s. 775.084.
Rep. Johnson moved the adoption of the amendment to the
amendment, which was adopted.
32

A digest of today's Chamber action appears on last page

Number 6

Monday, October 5, 1987

JOURNAL OF THE HOUSE OF REPRESENTATIVES

Representatives Jamerson and Logan offered the following amend-
ment to the amendment:
Amendment 2 to Amendment 1-On page 1, line 25, strike all of
said line and insert: law.
Rep. Jamerson moved the adoption of the amendment to the
amendment. On motion by Rep. McEwan, the amendment to the
amendment was laid on the table.
Representative Silver offered the following amendment to the
amendment:
Amendment 3 to Amendment 1-On page 1, lines 15-17, strike all
of said lines and insert: Section 1. Section 790.053, Florida Statutes, is
created to read: 790.053 Open carrying of weapons.-
Rep. Silver moved the adoption of the amendment to the amend-
ment, which was adopted without objection.
The question recurred on the adoption of Amendment 1, as amended,
which was adopted.
Representatives R. C. Johnson, Clements, Gardner, Silver, Gustaf-
son, Lippman, Burke, Gutman, Friedman and Woodruff offered the
following title amendment:
Amendment 2-On page 1, strike the title and insert: An act
relating to carrying of weapons; creating s. 790.053, F.S., to restrict
the open carrying of weapons on or about the person; providing a
penalty; providing an effective date and an expiration date.
Rep. Johnson moved the adoption of the amendment, which was
adopted without objection.
On motion by Rep. Silver, the rules were waived by two-thirds vote
and HB 9-B, as amended, was read the third time by title. On passage,
the vote was:

Nays-None
Votes after roll call:
Yeas-Figg
Representatives Guber and Ostrau requested to be recorded as
voting "Yea" on HB 9-B.
So the bill passed, as amended, and was immediately certified to the
Senate after engrossment.

Conferees Announced
The Speaker announced if the House goes into conference, he will
appoint Representatives Gardner, Carpenter, Bell, Gustafson, R. C.
Johnson, Burke and Mackenzie as Conferees on the part of the House,
with Representatives Silver, Liberti and Renke as alternates on tax
issues for this Special Session.

Announcements
Rep. Gardner announced meetings of the Conference Committee at
4:30 p.m. today, in Morris Hall, and of the Committee on Finance &
Taxation at 9:00 a.m. tomorrow, in Morris Hall.

Message from the Senate

The Honorable Jon Mills, Speaker
I am directed to inform the House of Representatives that the Senate
has failed to pass HB 26-B.

The following prayer was offered by Representative Crady:
Our Father who art in Heaven, we thank Thee for allowing us to
meet as a body in Thy Name, along with the press and those watching.
Though we are not of a like mind at this time, bless the efforts that
have been forthcoming and lead us into a resolvement that will best
benefit the people of the State of Florida.
We firmly believe that the process works, but we are rapidly
realizing that divine intervention would not necessarily be rejected.
Keep our minds clear, our hearts pure, and allow our egos to be
suppressed long enough to get the job done.
We ask these things in Thy Name. Amen.
The following Members were recorded present:

Excused: Representative Dunbar, due to birth of daughter, Sara
Harris Dunbar, on October 5; Representative Carlton, due to birth of
grandchild; Representative Webster, expecting birth of a child; Repre-
sentative Drage, due to business meeting in Orlando; Representative
Woodruff, due to court trial; Representative Cosgrove at 3:00 p.m.

A quorum was present.

Pledge

The Members pledged allegiance to the Flag.

The Journal

The Journal of October 5 was approved as corrected.

Introduction and Reference

By Representative Sansom-
HB 27-B-A bill to be entitled An act relating to the district school
system; permitting operating budget expenditures for educational
plant needs to fall below amounts prescribed in s. 235.435, F.S.;
authorizing a temporary deferral of repayment of certain excess
annual operating funds allocated pursuant to s. 236.081, F.S.; auth-
orizing teachers teaching writing skills pursuant to s. 236.1223, F.S.,
to teach more than 100 students per day; authorizing districts to use
alternative staffing under certain circumstances; authorizing a tem-
porary increase in the discretionary ad valorem school tax provided for
in s. 236.25, F.S.; providing that the proceeds may be used for
operating expenses of the district; contravening provisions in the
General Appropriations Act relating to allocation of extended day and
seventh period funds, allocations for library materials and equipment,
and allocations for high school guidance counselors; providing effective
and repeal dates.
Placed in the Committee on Rules & Calendar, the Speaker having
ruled the measure was outside the purview of the Call.

By Representatives Silver, R. C. Johnson, Clements, Sanderson,
Saunders, Liberti, Friedman, Guber, Bloom, Rehm-
HB 28-B-A bill to be entitled An act relating to carrying of
weapons and firearms; creating s. 790.053, F.S., to restrict the open
carrying of weapons or firearms on or about the person and to
authorize the open carrying of certain weapons and devices; providing
a penalty; amending s. 790.25, F.S.; correcting and updating statutory
cross-references relating to requirements for carrying firearms and
other weapons; providing an effective date.
Rep. Silver moved that HB 28-B be admitted for introduction, the
Speaker having ruled the measure was outside the purview of the Call,
which was agreed to by the required Constitutional two-thirds vote,
and the bill was read the first time by title. On motions by Rep. Silver,
the rules were waived by two-thirds vote and HB 28-B was read the
second time by title and the third time by title. On passage, the vote
was:
Yeas-112

Nays-None
Votes after roll call:
Yeas-Casas, Morse
So the bill passed and was immediately certified to the Senate.

Rep. Bankhead moved that HR 18-B be admitted for introduction,
the Speaker having ruled the measure was outside the purview of the
Call, which was agreed to by the required Constitutional two-thirds
vote, and-

By Representative Bankhead-
HR 18-B-A resolution commending Monica Farrell for her accom-
plishments in becoming Miss Florida.
WHEREAS, Monica Farrell has garnered a series of honors on her
way to becoming Miss Florida for 1988, including becoming Miss
Jacksonville Wolfson in 1981, Jacksonville Junior Miss, Florida Junior
Miss in 1982, Miss Jacksonville in 1984, Miss Jacksonville University
and Homecoming Queen in 1985, Miss Florida in 1985, and Miss
America National Talent Award Winner of 1985, and
WHEREAS, Monica Farrell was crowned August 9, 1987, to
represent the State of Florida in February 1988 in the Miss USA
Pageant and, if she is selected as Miss USA she will be the first
Floridian in 20 years to be so honored, and
WHEREAS, Monica Farrell was selected from a field of 116
contestants from Florida, and
WHEREAS, it is fitting and appropriate that the House of Represen-
tatives take time out to honor Monica Farrell for her accomplishments,
NOW, THEREFORE,
Be It Resolved by the House of Representatives of the State of
Florida:
That the House of Representatives hereby commends Monica Farrell
for her accomplishments in becoming Miss Florida in the Miss USA
Pageant.
BE IT FURTHER RESOLVED that a copy of this resolution be
presented to Monica Farrell as a tangible token of the sentiments
expressed herein.
-was read the first time by title. On motions by Rep. Bankhead, the
rules were waived and the resolution was read the second time by title
and adopted.

Messages from the Senate

The Honorable Jon Mills, Speaker
I am directed to inform the House of Representatives that the Senate
has admitted for introduction and consideration by the required
Constitutional two-thirds vote and passed with amendments HB 16-B,
and requests the concurrence of the House.

Joe Brown, Secretary

HB 16-B-A bill to be entitled An act relating to voter information;
amending s. 97.021, F.S.; providing definitions; amending s. 98.211,
F.S.; revising procedures and requirements for copying voter registra-
tion information; amending s. 101.62, F.S.; revising provisions relating
to requests for information on absentee ballots; providing an effective
date.
Senate Amendment 1-On page 1, line 13, strike everything after
the enacting clause and insert: Section 1. Section 98.211, Florida
Statutes, as amended by chapter 87-363, Laws of Florida, is amended
to read:
(Substantial rewording of section. See s. 98.211, F.S., as amended by
chapter 87-363, Laws of Florida, for present text.)
98.211 County registers open to inspection; copies.-
(1)(a) The registration books are public records. Every citizen is
allowed to examine the registration books while they are in the
custody of the supervisor, but is not allowed to make copies or extracts
therefrom except as provided by this section. Within 15 days of a
request, the supervisor shall furnish any requested information,
excluding a voter's signature, which the supervisor maintains pursu-
ant to the "The Florida Election Code."
(b) Notwithstanding the provision of paragraph (a), after an election,
if there is a request for information relating to electors who voted in
the most recent election, within 15 days of the request the supervisor
shall either provide the information or allow the persons, entities, or
agents thereof, as authorized in this section, to personally extract or
copy the information.
(c) Actual costs of duplication shall be charged in accordance with
the provisions of s. 119.07.
(2) The information provided pursuant to this section shall be
furnished only to:
(a) The courts for the purpose of jury selection;
(b) Municipalities;
(c) Other governmental agencies;
(d) Candidates, to further their candidacy;
(e) Registered political committees, registered committees of contin-
uous existence, and political parties or officials thereof, for political
purposes only; and
(f) Incumbent officeholders, to report to their constituents.
Such information shall not be used for commercial purposes. No person
to whom a list of registered voters is made available pursuant to this
section, and no person who acquires such a list, shall use any
information contained therein for purposes which are not related to
elections, political or governmental activities, voter registration, law
enforcement, or jury selection.
(3) Any person who acquires a precinct list from the office of the
supervisor shall take and subscribe to an oath which shall be in
substantially the following form:
I hereby swear or affirm that I am a person authorized by s. 98,211,
Florida Statutes, to acquire information on registered voters of ...
County, Florida; that the information acquired will be used only for

the purposes prescribed in that section and for no other purpose; and
that I will not permit the use or copying of such information by persons
not authorized by the Election Code of the State of Florida.
... (Signature of person acquiring list) .

October 7, 1987

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JOURNAL OF THE HOUSE OF REPRESENTATIVES

Sworn to and subscribed before me this .... day of .. ,19 .....
... (Signature and title of person administering oath) .
Section 2. Subsection (3) of section 101.62, Florida Statutes, as
amended by chapter 87-363, Laws of Florida, is amended to read:
101.62 Request for absentee ballots.-
(3) For each request for an absentee ballot received, the supervisor
shall record the date the request was made, the date the absentee
ballot was delivered or mailed, the date the ballot was received by the
supervisor, and such other information he may deem necessary.,
however, such This information shall be exempt from the provisions of
s. 119.07(1) and shall be made available to or reproduced only for a
canvassing board, an election official, a political party or official
thereof, or a candidate who has filed his qualification papers and is
opposed in an upcoming election and registered political committees or
registered committees of continuous existence, for political purposes
only. This exemption is subject to the Open Government Sunset
Review Act in accordance with s. 119.14.
Section 3. This act shall take effect upon becoming a law.
Senate Amendment 2-In title, on page 1, lines 2-9, strike all of
said lines and insert: An act relating to voter information; amending
s. 98.211, F.S.; revising procedures and requirements for copying voter
registration information; amending s. 101.62, F.S.; revising provisions
relating to requests for information on absentee ballots; providing an
effective date.
On motions by Rep. Mackenzie, without objection, the House
concurred in the Senate amendments. The question recurred on the
passage of HB 16-B. The vote was:
Yeas-114

Nays-None
So the bill passed, as amended. The action was immediately certified
to the Senate and the bill was ordered enrolled after engrossment.

The Honorable Jon Mills, Speaker
I am directed to inform the House of Representatives that the Senate
has admitted for introduction and consideration by the required
Constitutional two-thirds vote and passed SB 31-B and requests the
concurrence of the House.
Joe Brown, Secretary

October 7, 1987

By Senator Johnson and others-
SB 31-B-A bill to be entitled An act relating to building
designations; naming building six of the Department of Highway
Safety and Motor Vehicles located in Tampa the "Clinton James
Hutches Building"; authorizing the Department of Highway Safety
and Motor Vehicles to erect suitable markers; providing an effective
date.
Rep. Clements moved that SB 31-B be admitted for introduction, the
Speaker having ruled the measure was outside the purview of the Call,
which was agreed to by the required Constitutional two-thirds vote,
and the bill was read the first time by title. On motions by Rep.
Clements, the rules were waived by two-thirds vote and SB 31-B was
read the second time by title and the third time by title. On passage,

Nays-None
So the bill passed and was immediately certified to the Senate.

The Honorable Jon Mills, Speaker
I am directed to inform the House of Representatives that the Senate
has admitted for introduction and consideration by the required
Constitutional two-thirds vote and passed SB 32-B and requests the
concurrence of the House.

Joe Brown, Secretary

By Senator Beard-
SB 32-B-A bill to be entitled An act relating to Hillsborough
County; relating to the Civil Service Act; amending section 4 of
chapter 85-424, Laws of Florida, to remove personnel of the Hills-
borough County school board from mandatory application of the Civil
Service Act and to provide that said school board by interlocal
agreement with the civil service board may participate in the civil
service system; amending sections 6 and 13 of chapter 85-424, Laws of
Florida, and section 14 of chapter 85-424, Laws of Florida, as amended,
to delete references to said school board; amending section 15 of
chapter 85-424, Laws of Florida, to delete reference to said school
board and to reduce the membership of the review committee;
repealing chapter 85-423, Laws of Florida, relating to definitions and
classes of certain school board employees; providing an effective date.

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JOURNAL OF THE HOUSE OF REPRESENTATIVES

Proof of publication of the required notice was attached

Rep. C. F. Jones moved that SB 32-B be admitted for introduction,
the Speaker having ruled the measure was outside the purview of the
Call, which was agreed to by the required Constitutional two-thirds
vote, and the bill was read the first time by title. On motions by Rep.
Jones, the rules were waived by two-thirds vote and SB 32-B was read
the second time by title and the third time by title. On passage, the
vote was:

I am directed to inform the House of Representatives that the Senate
has admitted for introduction and consideration by the required
Constitutional two-thirds vote and passed SB 33-B and requests the
concurrence of the House.

Joe Brown, Secretary

By Senator Dudley-

SB 33-B-A bill to be entitled An act relating to Collier County;
amending s. 21 of chapter 61-2034, Laws of Florida, as created by s. 3
of chapter 83-391, Laws of Florida; authorizing the East Naples Fire
Control District to issue bonds which mature less than 12 months from
the date of issue without referendum approval; providing an effective
date.

Proof of publication of the required notice was attached

Rep. C. F. Jones moved that SB 33-B be admitted for introduction,
the Speaker having ruled the measure was outside the purview of the
Call, which was agreed to by the required Constitutional two-thirds
vote, and the bill was read the first time by title. On motions by Rep.
Jones, the rules were waived by two-thirds vote and SB 33-B was read
the second time by title and the third time by title. On passage, the
vote was:

Nays-None
So the bill passed and was immediately certified to the Senate.

The Honorable Jon Mills, Speaker
I am directed to inform the House of Representatives that the Senate
has admitted for introduction and consideration by the required
Constitutional two-thirds vote and passed SB 34-B and requests the
concurrence of the House.
Joe Brown, Secretary

By Senator Dudley-
SB 34-B-A bill to be entitled An act relating to Lee County;
amending s. 3, ch. 74-522, Laws of Florida; providing that certain
members of the sheriffs department are subject to the civil service act;
amending s. 15, ch. 74-522, Laws of Florida, as amended by s. 1, ch.
87-446, Laws of Florida; requiring the Lee County Sheriffs Depart-
ment to reduce the amount of the health insurance costs it pays for
certain retired personnel under certain circumstances; providing an
effective date.
Proof of publication of the required notice was attached
Rep. C. F. Jones moved that SB 34-B be admitted for introduction,
the Speaker having ruled the measure was outside the purview of the
Call, which was agreed to by the required Constitutional two-thirds
vote, and the bill was read the first time by title. On motions by Rep.
Jones, the rules were waived by two-thirds vote and SB 34-B was read
the second time by title and the third time by title. On passage, the
vote was:
Yeas-114

Nays-None
So the bill passed and was immediately certified to the Senate.

Report of the Committee on Rules & Calendar

The Honorable Jon Mills
Speaker, House of Representatives

October 7, 1987

Sir:
Subject to a waiver of the Rules pursuant to Rule 15.2, I am
submitting the following Special and Continuing Order Calendar for
Wednesday, October 7, 1987:
CS/CS/SB 5-B-Sales Tax Revision
HB 29-B-Appropriations Act

Respectfully submitted,
Carl Carpenter, Jr., Chairman
On motion by Rep. Carpenter, the rules were waived and the above
report was adopted.

Recessed

On motion by Rep. Carpenter, the House stood in informal recess at
2:20 p.m. to reconvene upon call of the Speaker.

Reconvened

The House was called to order by the Speaker at 6:18 p.m. A quorum
was present.

tax and providing for redistribution of tax proceeds; repealing
ss. 206.87(1)(b), 206.875(3), F.S.; repealing the increase in diesel fuel
taxes; amending s. 207.026, F.S.; providing for redistribution of taxes;
amending s. 212.235, F.S.; revising certain limitations on the State
Infrastructure Fund funding; providing for certain allocations from the
fund for certain purposes; providing for application of the additional
sales or use tax to certain utility services; providing transition rules
for the repeal of the services tax; providing for refund of additional
taxes paid by certain contractors; providing penalties; saving certain
actions from abatement; amending s. 218.61, F.S.; revising the local
government half-cent sales tax distribution formula; creating in the
Executive Office of the Governor a State Tax Study Committee to
study state and local government taxing structures and funding
sources; providing for membership, meetings, duties, and staff of the
committee; requiring reports; providing for per diem and travel
expenses; providing an appropriation; providing for certain positions
and funding to be placed in reserve; amending ss. 216.011, 216.046,
216.081, 216.167, 216.181, 216.292, 216.301, 235.41, F.S.; defining the
term "proviso"; providing for Governor's supplemental recommenda-
tions; providing for data on legislative expenses; providing for
Governor's recommendations; providing for appropriation committee
statements of intent; providing for transferability and transfer of
appropriations; providing for legislative capital outlay budget request;
repealing s. 216.031(7), F.S., as amended, relating to information
required in legislative budget requests; providing severability; provid-
ing an effective date.
-was read the second time by title.
The Committee on Appropriations offered the following amendment:
Amendment 1-On page 3, line 11, strike everything after the
enacting clause and insert:
PART I
Section 1. Sections 212.059, 212.0591, and 212.0595, Florida Stat-
utes, as created by chapter 87-6, Laws of Florida, and amended by
chapters 87-72 and 87-101, Laws of Florida, are hereby repealed.
Section 2. Sections 212.0592 and 212.0593, Florida Statutes, as
created by chapter 87-6, Laws of Florida, and amended by chapter
87-101, Laws of Florida, are hereby repealed.
Section 3. Section 212.0594, Florida Statutes, as created by chapter
87-101, Laws of Florida, is hereby repealed.
Section 4. Section 212.03, Florida Statutes, is amended to read:
212.03 Transient rentals tax; rate, procedure, enforcement, exemp-
tions.-
(1) It is hereby declared to be the legislative intent that every person
is exercising a taxable privilege who engages in the business of
renting, leasing, or letting any living quarters or sleeping or
housekeeping accommodations in, from, or a part of, or in connection
with any hotel, apartment house, roominghouse, or tourist or trailer
camp. For the exercise of such privilege, a tax is hereby levied in an
amount equal to 5.5 5 percent of and on the total rental charged for
such living quarters or sleeping or housekeeping accommodations by
the person charging or collecting the rental. Such tax shall apply to
hotels, apartment houses, roominghouses, or tourist or trailer camps
whether or not there is in connection with any of the same any dining
rooms, cafes, or other places where meals or lunches are sold or served
to guests.
(2) The tax provided for herein shall be in addition to the total
amount of the rental, shall be charged by the lessor or person receiving
the rent in and by said rental arrangement to the lessee or person
paying the rental, and shall be due and payable at the time of the
receipt of such rental payment by the lessor or person, as defined in
this chapter, who receives said rental or payment. The owner, lessor, or
person receiving the rent shall remit the tax to the department at the
times and in the manner hereinafter provided for dealers to remit
taxes under this chapter. The same duties imposed by this chapter
upon dealers in tangible personal property respecting the collection
and remission of the tax; the making of returns; the keeping of books,

records, and accounts; and the compliance with the rules and
regulations of the department in the administration of this chapter

68

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JOURNAL OF THE HOUSE OF REPRESENTATIVES

shall apply to and be binding upon all persons who manage or operate
hotels, apartment houses, roominghouses, tourist and trailer camps,
and the rental of condominium units, and to all persons who collect or
receive such rents on behalf of such owner or lessor taxable under this
chapter.
(3) When rentals are received by way of property, goods, wares,
merchandise, services, or other things of value, the tax shall be at the
rate of 5.5 5 percent of the value of the property, goods, wares,
merchandise, services, or other things of value.
(4) The tax levied by this section shall not apply to, be imposed upon,
or collected from any person who shall have entered into a bona fide
written lease for longer than 6 months in duration for continuous
residence at any one hotel, apartment house, roominghouse, tourist or
trailer camp, or condominium, or to any person who shall reside
continuously longer than 6 months at any one hotel, apartment house,
roominghouse, tourist or trailer camp, or condominium and shall have
paid the tax levied by this section for 6 months of residence in any one
hotel, roominghouse, apartment house, tourist or trailer camp, or
condominium. Notwithstanding other provisions of this chapter, no tax
shall be imposed upon rooms provided guests when there is no
consideration involved between the guest and the public lodging
establishment. Further, any person who, on the effective date of this
act, has resided continuously for 6 months at any one hotel, apartment
house, roominghouse, tourist or trailer camp, or condominium, or, if
less than 6 months, has paid the tax imposed herein until he shall
have resided continuously for 6 months, shall thereafter be exempt, so
long as such person shall continuously reside at such location. The
Department of Revenue shall have the power to reform the rental
contract for the purposes of this chapter if the rental payments are
collected in other than equal daily, weekly, or monthly amounts so as
to reflect the actual consideration to be paid in the future for the right
of occupancy during the first 6 months.
(5) The tax imposed by this section shall constitute a lien on the
property of the lessee or rentee of any sleeping accommodations in the
same manner as and shall be collectible as are liens authorized and
imposed by ss. 713.68 and 713.69.
(6) It is the legislative intent that every person is engaging in a
taxable privilege who leases or rents parking or storage spaces for
motor vehicles in parking lots or garages, who leases or rents docking
or storage spaces for boats in boat docks or marinas, or who leases or
rents tie-down or storage space for aircraft at airports. For the exercise
of this privilege, a tax is hereby levied at the rate of 5.5 5 percent on
the total rental charged.
(7)(a) Full-time students enrolled in an institution offering postse-
condary education and military personnel currently on active duty who
reside in the facilities described in subsection (1) shall be exempt from
the tax imposed by this section. The department shall be empowered to
determine what shall be deemed acceptable proof of full-time enroll-
ment. The exemption contained in this subsection shall apply irre-
spective of any other provisions of this section. The tax levied by this
section shall not apply to or be imposed upon or collected on the basis
of rentals to any person who resides in any building or group of
buildings intended primarily for lease or rent to persons as their
permanent or principal place of residence.
(b) It is the intent of the Legislature that this subsection provide tax
relief for persons who rent living accommodations rather than own
their homes, while still providing a tax on the rental of lodging
facilities that primarily serve transient guests.
(c) The rental of facilities, including trailer lots, which are intended
primarily for rental as a principal or permanent place of residence is
exempt from the tax imposed by this chapter. The rental of facilities
that primarily serve transient guests is not exempt by this subsection.
In the application of this law, or in making any determination against
the exemption, the department shall consider and be guided by, among
other things:
1. Whether or not a facility caters primarily to the traveling public;
2. Whether less than half of the total rental units available are

occupied by tenants who have a continuous residence in excess of 3
months; and

3. The nature of the advertising of the facility involved.
(d) The rental of living accommodations in migrant labor camps is
not taxable under this section. "Migrant labor camps" are defined as
one or more buildings or structures, tents, trailers, or vehicles, or any
portion thereof, together with the land appertaining thereto, estab-
lished, operated, or used as living quarters for seasonal, temporary, or
migrant workers.
Section 5. Paragraphs (c) and (d) of subsection (1) of section 212.031,
Florida Statutes, as amended by sections 8 and 25 of chapter 87-6 and
section 10 of chapter 87-101, Laws of Florida, are amended to read:
212.031 Lease or rental of or license in real property.-
(1)
(c) For the exercise of such privilege, a tax is levied in an amount
equal to 5.5 5 percent of and on the total rent or license fee charged for
such real property by the person charging or collecting the rental or
license fee.
(d) When the rental or license fee of any such real property is paid by
way of property, goods, wares, merchandise, services, or other thing of
value, the tax shall be at the rate of 5.5 5 percent of the value of the
property, goods, wares, merchandise, services, or other thing of value.
Section 6. Section 212.04, Florida Statutes, as amended by sections 9
and 25 of chapter 87-6 and section 11 of chapter 87-101, Laws of
Florida, is amended to read:
212.04 Admissions tax; rate, procedure, enforcement.-
(1)(a) It is hereby declared to be the legislative intent that every
person is exercising a taxable privilege who sells or receives anything
of value by way of admissions.
(b) For the exercise of such privilege, a tax is levied at the rate of 5.5
5 percent of sales price, or the actual value received from such
admissions, which 5.5 5 percent shall be added to and collected with all
such admissions from the purchaser thereof; and such tax shall be paid
for the exercise of the privilege as defined in the preceding paragraph.
Each ticket shall show on its face the actual sales price of admission,
and the tax shall be computed and collected on the basis of each such
admission price. The sale price or actual value of admission shall, for
the purpose of this chapter, be that price remaining after deduction of
federal taxes, if any, imposed upon such admission; and the rate of tax
on each admission shall be according to the brackets established by
s. 212.12(9)(40).
(2)(a)1. No tax shall be levied on admissions to athletic or other
events sponsored by elementary schools, junior high schools, middle
schools, high schools, community colleges, public or private colleges
and universities, deaf and blind schools, facilities of the youth services
programs of the Department of Health and Rehabilitative Services,
and state correctional institutions when only student, faculty, or
inmate talent is utilized. H weaver, this exemption shall net apply to
admission to athletic events sponsored by an institution within the
State University System, and the proceeds of the ta eelleeted on saeh
admissions shall be retained and utilized by eaeh institution o support
women's athletics as provided in s. 40.33(4e .
2. No tax shall be levied on dues, membership fees and admission
charges imposed by not-for-profit religious sponsoring organizations.
To receive this exemption, the sponsoring organization must qualify as
a not-for-profit entity under the provisions of s. 501(c)(3) of the United
States Internal Revenue Code of 1954, as amended.
3. No tax shall be levied on an admission paid by a student, or on his
behalf, to any required place of sport or recreation if the student's
participation in the sport or recreational activity is required as a part
of a program or activity sponsored by, and under the jurisdiction of, the
student's educational institution, provided his attendance is as a
participant and not as a spectator.
4. No tax shall be levied on admissions to the National Football
League championship game.

5. No tax shall be levied on admissions to athletic or other events
sponsored by governmental entities.

October 7, 1987

69

70 JOURNAL OF THE HOUSE]

(b) No municipality of the state shall levy an excise tax on
admissions.
(c) The taxes imposed by this section shall be collected in addition to
the admission tax collected pursuant to s. 550.09, but the amount
collected under s. 550.09 shall not be subject to taxation under this
chapter.
(3) Such taxes shall be paid and remitted at the same time and in the
same manner as provided for remitting taxes on sales of tangible
personal property, as hereinafter provided.
(4) Each person who exercises the privilege of charging admission
taxes, as herein defined, shall apply for, and at that time shall furnish
the information and comply with the provisions of s. 212.18 not
inconsistent herewith and receive from the department, a certificate of
right to exercise such privilege, which certificate shall apply to each
place of business where such privilege is exercised and shall be in the
manner and form prescribed by the department. Such certificate shall
be issued upon payment to the department of a registration fee of $5 by
the applicant. Each person exercising the privilege of charging such
admission taxes as herein defined shall cause to be kept records and
accounts showing the admission which shall be in the form as the
department may from time to time prescribe, inclusive of records of all
tickets numbered and issued for a period of not less than 3 years, and
inclusive of all bills or checks of customers who are charged any of the
taxes defined herein, showing the charge made to each for a period of
not less than 3 years. The department is empowered to use each and
every one of the powers granted herein to the department to discover
the amount of tax to be paid by each such person and to enforce the
payment thereof as are hereby granted the department for the
discovery and enforcement of the payment of taxes hereinafter levied
on the sales of tangible personal property. The failure of any person to
pay such taxes before the 21st day of the succeeding month after the
taxes are collected shall render such person liable to the same
penalties that are hereafter imposed upon such person for being
delinquent in the payment of taxes imposed upon the sales of tangible
personal property; and the failure of any person to render returns and
to pay taxes as prescribed herein shall render such person subject to
the same penalties, by way of charges for delinquencies, at the rate of 5
percent per month for a total amount of tax delinquent up to a total of
25 percent of such tax, and at the rate of 50-percent penalty for
attempted evasion of payment of any such tax or for any attempt to file
false or misleading returns that are required to be filed by the
department.
(5) All of the provisions of this chapter relating to collection,
investigation, discovery, and aids to collection of taxes upon sales of
tangible personal property shall likewise apply to all privileges
described or referred to in this section; and the obligations imposed in
this chapter upon retailers are hereby imposed upon the seller of such
admissions. When tickets or admissions are sold and not used but
returned and credited by the seller, the seller may apply to the
department for a credit allowance for such returned tickets or
admissions if advance payments have been made by the buyer and
have been returned by the seller, upon such form and in such manner
as the department may from time to time prescribe; and the
department may, upon obtaining satisfactory proof of the refunds on
the part of the seller, credit the seller for taxes paid upon admissions
that have been returned unused to the purchaser of those admissions.
The seller of admissions, upon the payment of the taxes before they
become delinquent and the rendering of the returns in accordance with
the requirement of the department and as provided in this law, shall
be entitled to a discount of 3 percent of the amount of taxes upon the
payment thereof before such taxes become delinquent, in the same
manner as permitted the sellers of tangible personal property in this
chapter. However, if the amount of the tax due and remitted to the
department for the reporting period exceeds $1,000, the 3-percent
discount shall be reduced to 1 percent for all amounts in excess of
$1,000.

E

(6) Admission taxes required to be paid by this chapter shall be paid
to the department by the owner or the collector of such admission.
When any place of business is sold or transferred by any owner,
wherein such admission taxes have accrued or are accruing, such

---- ---- ---

2. This paragraph does not apply to the sale of a boat or airplane by
or through a registered dealer under this chapter to a purchaser who
removes such boat or airplane from this state within 10 days after the
date of purchase or, when the boat or airplane is repaired or altered,

OF REPRESENTATIVES October 7, 1987

owner shall be obligated before such sale becomes effective to notify
the department of such pending sale and secure from the department a
certificate of registration as prescribed in this section, and the
purchaser shall become obligated to withhold from the sales price such
sum of money as will safely be required to discharge all accrued
admission taxes upon such places of business; and, upon the failure of
any such purchaser to withhold, he shall become obligated to pay all
accrued admission taxes, and the same shall become a lien upon all of
the purchaser's assets until the same have been paid and fully
discharged.
(7) The taxes under this section shall become a lien upon the assets
of the owner of any business exercising the privilege of selling
admissions, and the collection of such admissions, as defined hereun-
der, and shall remain a lien until fully paid and discharged. Such lien
may be enforced in the manner provided hereinafter for the enforce-
ment of the collection of taxes imposed upon the sales of tangible
personal property.
(8) The word "owners" as used in this chapter shall be taken to
include and mean all persons obligated to collect and pay over to the
state the tax imposed under this section, inclusive of all holders of
certificates of registration issued as herein provided. Wherever the
word "owner" or "owners" is used herein, it shall be taken to mean and
include all persons liable for such admission taxes unless it appears
from the context that the words are descriptive of property owners.
Section 7. Section 212.05, Florida Statutes, as amended by section 10
of chapter 87-6, sections 2 and 9 of chapter 87-99, section 12 of chapter
87-101, and section 7 of chapter 87-402, Laws of Florida, is amended to
read:
212.05 Sales, storage, use tax.-It is hereby declared to be the
legislative intent that every person is exercising a taxable privilege
who engages in the business of selling tangible personal property at
retail in this state, including the business of making mail order sales,
or who rents or furnishes any of the things or services taxable under
this chapter section, or who stores for use or consumption in this state
any item or article of tangible personal property as defined herein and
who leases or rents such property within the state.
(1) For the exercise of such privilege, a tax is levied on each taxable
transaction or incident, which tax is due and payable as follows:
(a)l.a. At the rate of 5.5 5 percent of the sales price of each item or
article of tangible personal property when sold at retail in this state,
computed on each taxable sale for the purpose of remitting the amount
of tax due the state, and including each and every retail sale.
b. Each occasional or isolated sale of an aircraft, boat, mobile home,
or motor vehicle of a class or type which is required to be registered,
licensed, titled, or documented in this state or by the United States
Government shall be subject to tax at the rate provided in this
paragraph. The department shall, by rule, adopt the NADA Official
Used Car Guide as the reference price list for any used motor vehicle
which is required to be licensed pursuant to s. 320.08(1), (2), (3)(a), (b),
(c), or (f), or (9). If any party to an occasional or isolated sale of such a
vehicle reports to the tax collector a sales price which is less than 80
percent of the average loan price for the specified model and year of
such vehicle as listed in the most recent reference price list, the tax
levied under this paragraph shall be computed by the department on
such average loan price unless the parties to the sale have provided to
the tax collector an affidavit signed by each party, or other substantial
proof, stating the actual sales price. Any party to such sale who reports
a sales price less than the actual sales price is guilty of a misdemeanor
of the second degree, punishable as provided in s. 775.083. The
department shall collect or attempt to collect from such party any
delinquent sales taxes. In addition, such party shall pay any tax due
and any penalty and interest assessed, plus a penalty equal to twice
the amount of the additional tax owed. Notwithstanding any other
provision of law, the Department of Revenue may waive or compromise
any penalty imposed after July 1, 1985, pursuant to this subparagraph.

within 10 days after completion of such repairs or alterations. In no
event shall the boat or airplane remain in this state more than 90 days
after the date of purchase. This exemption shall not be allowed unless
the seller:
a. Obtains from the purchaser within 90 days from the date of sale
written proof that the purchaser licensed, registered, or documented
the boat or airplane outside the state;
b. Requires the purchaser to sign an affidavit that he has read the
provisions of this section; and
c. Makes the affidavit a part of his permanent record.
In the event the purchaser fails to remove the boat or airplane from
this state within 10 days after purchase or, when the boat or airplane
is repaired or altered, within 10 days after completion of such repairs
or alterations, or permits the boat or airplane to return to this state
within 6 months from the date of departure, the purchaser shall be
liable for use tax on the cost price of the boat or airplane and, in
addition thereto, payment of a penalty to the Department of Revenue
equal to the tax payable. This penalty shall be in lieu of the penalty
imposed by s. 212.12(2) and is mandatory and shall not be waived by
the department.
(b) At the rate of 5.5 5 percent of the cost price of each item or article
of tangible personal property when the same is not sold but is used,
consumed, distributed, or stored for use or consumption in this state.
(c) At the rate of 5.5 5 percent of the gross proceeds derived from the
lease or rental of tangible personal property, as defined herein, except
the lease or rental of a commercial motor vehicle as defined in
s. 316.003(67)(a) to one lessee or rentee for a period of not less than 12
months when tax was paid on the acquisition of such vehicle by the
lessor, when the lease or rental of such property is an established
business or part of an established business or the same is incidental or
germane to such business.
(d) At the rate of 5.5 5 percent of the lease or rental price paid by a
lessee or rentee, or contracted or agreed to be paid by a lessee or
rentee, to the owner of the tangible personal property.
(e)l. At the rate of 5.5 5 percent on charges for all telegraph
messages and long distance telephone calls beginning and terminating
in this state; on charges for telecommunication service as defined in
s. 203.012 and for those services described in s. 203.012(2)(a); on
recurring charges to regular subscribers for wired television service; on
all charges for the installation of telecommunication, wired television,
and telegraphic equipment; and on all charges for electrical power or
energy. For purposes of this part, the term "telecommunication
service" does not include local service provided through a pay
telephone. The provisions of s. 212.17(3), regarding credit for tax paid
on charges subsequently found to be worthless, shall be equally
applicable to any tax paid under the provisions of this section on
charges for telecommunication or telegraph services or electric power
subsequently found to be uncollectible. The word "charges" in this
paragraph does not include any excise or similar tax levied by the
Federal Government, any political subdivision of the state, or any
municipality upon the purchase or sale of telecommunication, wired
television, or telegraph service or electric power, which tax is collected
by the seller from the purchaser.
2. Telegraph messages and telecommunication services which origi-
nate or terminate in this state, other than interstate private communi-
cation services, and are billed to a customer, telephone number, or
device located within this state are taxable under this paragraph.
Interstate private communication services are taxable under this
paragraph as follows:
a. One hundred percent of the charge imposed at each channel
termination point within this state;
b. One hundred percent of the charge imposed for the total channel
mileage between each channel termination point within this state; and
c. The portion of the interstate interoffice channel mileage charge as
determined by multiplying said charge times a fraction, the numerator
of which is the air miles between the last channel termination point in

this state and the vertical and horizontal coordinates, 7856 and 1756,
respectively, and the denominator of which is the air miles between

71

the last channel termination point in this state and the first channel
termination point outside this state. The denominator of this fraction
shall be adjusted, if necessary, by adding the numerator of said
fraction to similarly determined air miles in the state in which the
other channel termination point is located, so that the summation of
the apportionment factor for this state and the apportionment factor
for the other state is not greater than one, to ensure that no more than
100 percent of the interstate interoffice channel mileage charge can be
taxed by this state and another state.
3. The tax imposed pursuant to this paragraph shall not exceed
$50,000 per calendar year on charges to any person for interstate
telecommunications services defined in s. 203.012(4) and (7)(b), if the
majority of such services used by such person are for communications
originating outside of this state and terminating in this state. This
exemption shall only be granted to holders of a direct pay permit
issued pursuant to this subparagraph. No refunds shall be given for
taxes paid prior to receiving a direct pay permit. Upon application, the
department may issue a direct pay permit to the purchaser of
telecommunications services authorizing such purchaser to pay tax on
such services directly to the department. Any vendor furnishing
telecommunications services to the holder of a valid direct pay permit
shall be relieved of the obligation to collect and remit the tax on such
service. Tax payments and returns pursuant to a direct pay permit
shall be monthly. For purposes of this subparagraph, the term "person"
shall be limited to a single legal entity and shall not be construed as
meaning a group or combination of affiliated entities or entities
controlled by one person or group of persons. For purposes of this
subparagraph, for calendar year 1986, the term "calendar year" means
the last 6 months of 1986.
(f) At the rate of 5.5 5 percent on the sale, rental, use, consumption,
or storage for use in this state of machines and equipment and parts
and accessories therefore used in manufacturing, processing, com-
pounding, producing, mining, or quarrying personal property for sale
or to be used in furnishing communications, transportation, or public
utility services.
(g) At the rate of 5 percent of the price, as determined pursuant to
part II, of each gallon of motor fuel or special fuel taxable pursuant to
that part, except that motor fuel and special fuel expressly taxable
under this part shall be taxed as provided in paragraphs (a) and (b).
(h) Any person who purchases, installs, rents, or leases a telephone
system or telecommunication system for his own use to provide himself
with telephone service or telecommunication service which is a
substitute for any telephone company switched service or a substitute
for any dedicated facility by which a telephone company provides a
communication path is exercising a taxable privilege and shall register
with the Department of Revenue and pay into the State Treasury a
yearly amount equal to 5.5 5 percent of the actual cost of operating
such system, notwithstanding the provisions of s. 212.081(3)(b). "Ac-
tual cost" includes, but is not limited to, depreciation, interest,
maintenance, repair, and other expenses directly attributable to the
operation of such system. For purposes of this paragraph, the
depreciation expense to be included in actual cost shall be the
depreciation expense claimed for federal income tax purposes. The
total amount of any payment required by a lease or rental contract or
agreement shall be included within the actual cost. The provisions of
this paragraph do not apply to the use by any local telephone company
or any telecommunication carrier of its own telephone system or
telecommunication system to conduct a telecommunication service for
hire. If a system described in this paragraph is located in more than
one state, the actual cost of such system for purposes of this paragraph
shall be the actual cost of the system's equipment located in Florida.
(i) At the rate of 5.5 5 percent on the retail price of newspapers and
magazines sold or used in Florida.
(2) The tax shall be collected by the dealer, as defined herein, and
remitted by him to the state at the time and in the manner as
hereinafter provided.
(3) The tax so levied is in addition to all other taxes, whether levied

in the form of excise, license, or privilege taxes, and in addition to all
other fees and taxes levied.

October 7, 1987

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JOURNAL OF THE HOUSE OF REPRESENTATIVES

(4) The tax imposed pursuant to this part shall be due and payable imposed by s. 212.12(2) and is mandatory and shall not be waived by
according to the brackets set forth in s. 212.12. the department.

Section 8. Effective July 1, 1988, paragraph (a) of subsection (1) of
section 212.05, Florida Statutes, as amended by section 83 of chapter
87-6 and section 52 of chapter 87-101, Laws of Florida, is amended to
read:
212.05 Sales, storage, use tax.-It is hereby declared to be the
legislative intent that every person is exercising a taxable privilege
who engages in the business of selling tangible personal property at
retail in this state, including the business of making mail order sales,
or who rents or furnishes any of the things or services taxable under
this chapter section, or who stores for use or consumption in this state
any item or article of tangible personal property as defined herein and
who leases or rents such property within the state.
(1) For the exercise of such privilege, a tax is levied on each taxable
transaction or incident, which tax is due and payable as follows:
(a)l.a. At the rate of 5.5 5 percent of the sales price of each item or
article of tangible personal property when sold at retail in this state,
computed on each taxable sale for the purpose of remitting the amount
of tax due the state, and including each and every retail sale.
b. Each occasional or isolated sale of an aircraft, boat, mobile home,
or motor vehicle of a class or type which is required to be registered,
licensed, titled, or documented in this state or by the United States
Government shall be subject to tax at the rate provided in this
paragraph. The department shall, by rule, adopt the NADA Official
Used Car Guide as the reference price list for any used motor vehicle
which is required to be licensed pursuant to s. 320.08(1), (2), (3)(a), (b),
(c), or (f), or (9). If any party to an occasional or isolated sale of such a
vehicle reports to the tax collector a sales price which is less than 80
percent of the average loan price for the specified model and year of
such vehicle as listed in the most recent reference price list, the tax
levied under this paragraph shall be computed by the department on
such average loan price unless the parties to the sale have provided to
the tax collector an affidavit signed by each party, or other substantial
proof, stating the actual sales price. Any party to such sale who reports
a sales price less than the actual sales price is guilty of a misdemeanor
of the first degree, punishable as provided in s. 775.082, s. 775.083, or
s. 775.084. The department shall collect or attempt to collect from such
party any delinquent sales taxes. In addition, such party shall pay any
tax due and any penalty and interest assessed, plus a penalty equal to
twice the amount of the additional tax owed. Notwithstanding any
other provision of law, the Department of Revenue may waive or
compromise any penalty imposed after July 1, 1985, pursuant to this
subparagraph sb subparagraph. For purposes ef this sub subpara
graph an eeasinal or isolated sale is one in which the seller is net a
motor vehicle dealer as defined in s- 320.271)(ec)
2. This paragraph does not apply to the sale of a boat or airplane by
or through a registered dealer under this chapter to a purchaser who
removes such boat or airplane from this state within 10 days after the
date of purchase or, when the boat or airplane is repaired or altered,
within 10 days after completion of such repairs or alterations. In no
event shall the boat or airplane remain in this state more than 90 days
after the date of purchase. This exemption shall not be allowed unless
the seller:
a. Obtains from the purchaser within 90 days from the date of sale
written proof that the purchaser licensed, registered, or documented
the boat or airplane outside the state;
b. Requires the purchaser to sign an affidavit that he has read the
provisions of this section; and
c. Makes the affidavit a part of his permanent record.
In the event the purchaser fails to remove the boat or airplane from
this state within 10 days after purchase or, when the boat or airplane
is repaired or altered, within 10 days after completion of such repairs
or alterations, or permits the boat or airplane to return to this state
within 6 months from the date of departure, the purchaser shall be
liable for use tax on the cost price of the boat or airplane and, in
addition thereto, payment of a penalty to the Department of Revenue
equal to the tax payable. This penalty shall be in lieu of the penalty

Section 9. Section 212.055, Florida Statutes, as amended by section 8
of chapter 87-99, section 1 of chapter 87-100, and section 2 of chapter
87-239, Laws of Florida, is amended, and effective upon this act
becoming a law, paragraphs (c) through (i) of subsection (3) are
redesignated as paragraphs (d) through (j), respectively, and a new
paragraph (c) is added to said subsection to read:
212.055 Discretionary sales surtaxes; legislative intent; authoriza-
tion and use of proceeds.-It is the legislative intent that any
authorization for imposition of a discretionary sales surtax shall be
published in the Florida Statutes as a subsection of this section,
irrespective of the duration of the levy. Each enactment shall specify
the types of counties authorized to levy; the rate or rates which may be
imposed; the maximum length of time the surtax may be imposed, if
any; the procedure which must be followed to secure voter approval, if
required; the purpose for which the proceeds may be expended; and
such other requirements as the Legislature may provide. Taxable
transactions and administrative procedures shall be as provided in
s. 212.054.
(1) CHARTER COUNTY TRANSIT SYSTEM SURTAX.-
(a) Each charter county which adopted a charter prior to June 1,
1976, and each county the government of which is consolidated with
that of one or more municipalities may levy a discretionary sales
surtax, subject to approval by a majority vote of the electorate of the
county.
(b)4- The rate shall be up to two-elevenths one-fifth (20 percent) or in
incremental parts thereof as established by the county governing body,
of any amount of tax imposed by and paid to the state pursuant to this
part, except this section and s. 212.054.
2r. NI\tiNrthsAA:R ... -3nr;= L1q ff any eeunty the government
% Notwithstanding subparagraph 47 for any county the government
ef which is eensolidated with that f one or more m ipalities, upon
the retirement ef ay bonds which were issued for the eenstrution ef
roads and bridges and which were outstanding en the effective date f
this aet, the rate shall be ene-tenth (40 percent efany amount ef tax
imed by eind paid to the state pursuant o this party exeept this
section asnd 212.054
(c) The proposal to adopt a discretionary sales surtax as provided in
this subsection and to create a rapid transit trust fund within the
county accounts shall be placed on the ballot in accordance with law at
a time to be set at the discretion of the governing body.
(d) Proceeds from the surtax shall be:
1. Deposited by the county in the rapid transit trust fund and shall
be used only for the purposes of development, construction, equipment,
maintenance, operation, supportive services, including a countywide
bus system, and related costs of a fixed guideway rapid transit system;
or
2. Remitted by the governing body of the county to an expressway or
transportation authority created by law to be used, at the discretion of
such authority, for the development, construction, operation, or
maintenance of roads or bridges in the county, the operation and
maintenance of a bus system, or the payment of principal and interest
on existing bonds issued for the construction of such roads or bridges,
and, upon approval by the county commission, such proceeds may be
pledged for bonds issued to refinance existing bonds or new bonds
issued for the construction of such roads or bridges.
(e) Notwithstanding the provisions of s. 212.054(5), the surtax shall
take effect on the first day of a month as fixed by the county governing
body; however, the surtax shall not take effect until at least 60 days
following the electors' approval.
(2) INDIGENT CARE SURTAX.-
(a) The governing authority in each county which has a publicly
owned, publicly operated, and publicly managed regional referral
hospital, as defined in s. 154.304(4), which hospital has an affiliation
agreement with a state university medical school located in that
county and which hospital would have received from the county
between October 1, 1982, and September 30, 1983, more than it

October 7, 1987

72

JOURNAL OF THE HOUSE OF REPRESENTATIVES

actually received for providing health care for recipient indigent
patients had 1982-1983 federal poverty guidelines been applied, is
authorized to levy by ordinance, for the period January 1, 1986,
through March 31, 1987, or any quarterly portion thereof, a discre-
tionary sales surtax.
(b) The rate shall be 5 percent of any tax paid to the state pursuant
to this part, except this section and s. 212.054.
(c) The provisions of s. 212.054(2)(b)1. shall not apply to the surtax
authorized by this subsection.
(d) The ordinance adopted by the governing body providing for the
imposition of the surtax shall set forth criteria for the selection of the
providers of the health care services to be paid therefore from the
proceeds thereof.
(e) The department shall disburse the moneys to the clerk of the
circuit court as ex officio custodian of the funds of the authorizing
county, who shall maintain the moneys in an Indigent Health Care
Trust Fund. Any funds on deposit in the trust fund created pursuant to
this paragraph shall be invested pursuant to general law. The moneys
in an Indigent Health Care Trust Fund for an authorizing county and
any interest thereon shall be expended within that county or, in the
case of a negotiated joint county agreement by that authorizing county
with another county, within such other county, to provide health care
to certified indigent patients as defined by s. 154.304(1) who are
residents of the authorizing county.
(f) In enacting this subsection the Legislature expressly finds that it
would be an unconstitutional use of the taxing power of the state for
any holders of any hospital revenue obligation bonds to have a lien on
any of the funds raised under this subsection until those funds are
received by the health care provider for services rendered as provided.
The moneys in an Indigent Health Care Trust Fund for an authorizing
county, and any interest thereon, shall remain the property of the
State of Florida and shall be distributed by the Department of Revenue
on a regular and periodic basis to the governing authority of the
authorizing county, in trust, until they are paid to the account of the
appropriate provider of health care services to certified indigent
patients for services rendered after the effective date of this act, and
the funds shall not be disbursed from the trust fund until the
authorizing county has paid out of county funds for indigent health
care a sum equal to the amount which the authorizing county paid for
indigent health care out of county funds in the fiscal year preceding
the adoption of the authorizing ordinance.
(3) LOCAL GOVERNMENT INFRASTRUCTURE SURTAX.-
(a) The governing authority in each county may levy, for a period of
up to 15 years from the date of levy, a discretionary sales surtax of up
to one-eleventh 20 percent of any tax paid to the state pursuant to this
part, except this section, s. 212.054 and s. 212.0305. Such governing
authority may levy sueh surtax in an amount equal to 4- 10- 44 or 2 0
percent of said state tax* The levy of the surtax shall be pursuant to
ordinance enacted by a majority vote plus one of the members of the
county governing authority and approved by a majority of the eleeters
of the county voting in a referendum on the surtax. If the governing
bodies of the municipalities representing a majority of the county's
municipal population adopt uniform resolutions establishing the rate
of the surtax and calling for a referendum on the surtax, the levy of the
surtax shall be placed on the ballot and shall take effect if approved by
a majority of the electors of the county voting in the referendum on the
surtax. No referendum election called pursuant to the provisions of
this subseetion shall be held between March 9 and December 31-, 1988.
(b) A statement which includes a brief general description of the
projects to be funded by the surtax and which conforms to the
requirements of s. 101.161 shall be placed on the ballot by the
governing authority of any county which enates anf ordinance calling
for a referendum on the levy of the surtax or in which the governing
bodies of the municipalities representing a majority of the county's
population adopt uniform resolutions calling for a referendum on the
surtax. The following question shall be placed on the ballot:

(c) At least 7 days prior to the governing authorities' vote on the Local
Option Infrastructure Surtax ordinance, the governing authority shall
hold a public hearing to take public testimony on the adoption of the
surtax and to explain the need for the surtax and to describe the projects
to be funded by the surtax. At least 7 days prior to the public hearing,
the governing authority shall advertise in a newspaper of general paid
circulation in the county its intent to .consider adoption of the surtax and
the time and location of the public hearing. The advertisement shall be
of the form:
NOTICE OF SALES TAX INCREASE
The (. .. name of taxing authority. .) will soon consider a measure to
increase the sales tax rate by one-halfpercent in (. name of county. .)
county for a period of(. .. number of years.. ) years for the purpose of
funding infrastructure projects. All concerned citizens are invited to a
public hearing on the tax increase to be held on (. date and time. ..)
at (. meeting place. .). A decision on the proposed tax increase will
be made on (. .. date and time .) at (. .. meeting place. ..).
(d)(e) Pursuant to s. 212.054(4), the proceeds of the surtax levied
under this subsection shall be distributed to the county and the
municipalities within such county in which the surtax was collected,
according to:
1. An interlocal agreement between the county governing authority
and the governing bodies of the municipalities representing a majority
of the county's municipal etonty population; or
2. If there is no interlocal agreement, according to the formula
provided in s. 218.62.
(d4 The provisions of s- 212.054(2)(b). relating to the sales amount
above $1,000 o any item of tangible personal property shall nat apply
to the surtax authorized by this subseetien. The sales amount above
$5,000n any item of tangible personal property shall not be subject to
the surtax imposed by this subseetion.
(e) The department shall promulgate by rule the brackets applicable
to transactions which are subject to the surtax.
(f) 4- The proceeds of the surtax authorized by this subsection and
any interest accrued thereto shall be expended within the county and
municipalities within the county, or, in the case of a negotiated joint
county agreement, within another county, to finance, plan, purchase
and construct and provide public facilities to meet the standards
established in the capital improvements element required by
s. 163.3177. infrastrueture Neither the preeeeds nor any interest
a.eered thereto shatll e se foro peratina epene of any
infrastructure.
For the purposes of this paragraph "infrastructure" means any
fixed capital epenit e or field capital eeosts assoeiated with the
eonstruetion, reeenstruetion, orF improvement of public facilities whieh
have a life expeetaney of 5 or more years and any land acquisition,
land improvement, design and engineering eosts related thereto.
(g) Counties and municipalities receiving proceeds under the
provisions of this subsection may pledge such proceeds for the purpose
of servicing new bond indebtedness incurred pursuant to law. Local
governments may use the services of the Division of Bond Finance of
the Department of General Services pursuant to the State Bond Act to
issue any bonds through the provisions of this subsection. In no case
may a jurisdiction issue bonds pursuant to this subsection more
frequently than once per year. Counties and municipalities may join
together for the issuance of bonds authorized by this subsection.
(h) Counties and municipalities shall not use the surtax proceeds to
supplant or replace user fees or to reduce ad valorem taxes existing
prior to the levy of the surtax authorized by this subsection.
(i) No ordinance enacting the levying of such surtax shall be adopted
after November 30, 1992. No referendum proposing the levying of such
surtax shall be held after November 30, 1992.
(j) Notwithstanding the provisions of s. 212.054(5), the surtax shall
take effect on the first day of a month as fixed by the ordinance adopted
pursuant to paragraph (3)(a); however, the surtax shall not take effect

until at least 60 days following the adoption of the ordinance or the
electors' approval whichever is applicable.

.... FOR the one-half-cent sales tax
.... AGAINST the one-half-cent sales tax

October 7, 1987

73

74

Section 10. Subsection (3) and paragraph (c) of subsection (11) of
section 212.08, Florida Statutes, as amended by sections 14 and 25 of
chapter 87-6, section 4 of chapter 87-72, section 4 of chapter 87-99,
section 13 of chapter 87-101, and section 2 of chapter 87-370, Laws of
Florida, is amended to read:
212.08 Sales, rental, use, consumption, distribution, and storage tax;
specified exemptions.-The sale at retail, the rental, the use, the
consumption, the distribution, and the storage to be used or consumed
in this state of the following are hereby specifically exempt from the
tax imposed by part I of this chapter.
(3) EXEMPTIONS, PARTIAL; CERTAIN FARM EQUIPMENT.-
There shall be taxable at the rate of 3 percent the sale, use,
consumption, or storage for use in this state of self-propelled or
power-drawn farm equipment used exclusively by a farmer on a farm
owned, leased, or sharecropped by him in plowing, planting, cultivat-
ing, or harvesting crops. The rental of self-propelled or power-drawn
farm equipment shall be taxed at the rate of 5.5 5 percent.
(11) PARTIAL EXEMPTION; FLYABLE AIRCRAFT.-
(c) The maximum tax collectible under this subsection may not
exceed 5.5 5 percent of the sales price of such aircraft. No Florida tax
may be imposed on the sale of such aircraft if the state in which the
aircraft will be domiciled does not allow Florida sales or use tax to be
credited against its sales or use tax. Furthermore, no tax may be
imposed on the sale of such aircraft if the state in which the aircraft
will be domiciled has enacted a sales and use tax exemption for flyable
aircraft or if the aircraft will be domiciled outside the United States.
Section 11. Subsections (9) and (10) of section 212.12, Florida
Statutes, as amended by section 17 of chapter 87-6, section 6 of chapter
87-99, section 16 of chapter 87-101, and section 8 of chapter 87-402,
Laws of Florida, are amended to read:
212.12 Dealer's credit for collecting tax; penalties for noncompliance;
powers of Department of Revenue in dealing with delinquents;
brackets applicable to taxable transactions; records required.-
(9) Taxes imposed by this chapter upon the privilege of the use,
consumption, storage for consumption, or sale of tangible personal
property, admissions, license fees, rentals, and communication serv-
ices- and upon the sale or use of services as herein taxed shall be
collected upon the basis of an addition of the tax imposed by this
chapter to the total price of such admissions, license fees, rentals,
communication or ether services, or sale price of such article or articles
that are purchased, sold, or leased at any one time by or to a customer
or buyer; and the dealer, or person charged herein, is required to pay a
privilege tax in the amount of the tax imposed by this chapter on the
total of his gross sales of tangible personal property, admissions,
license fees, rentals, and communication services or to eelleet a tax
upon the sale ar use of services, and such person or dealer shall add the
tax imposed by this chapter to the price, license fee, rental, or
admissions, and communication or other services and collect the total
sum from the purchaser, admittee, licensee, lessee, or consumer.
Notwithstanding the rate of taxes imposed upon the privilege of sales,
admissions, license fees, rentals, and communication services, or upon
the sale or use of services, the following brackets shall be applicable to
all transactions taxable at the rate of 5.5 5 percent:
(a) On single sales of less than 10 cents, no tax shall be added.
(b) On single sales in amounts from 10 cents to 18 20 cents, both
inclusive, 1 cent shall be added for taxes.
(c) On sales in amounts from 19 21 cents to 36 40 cents, both
inclusive, 2 cents shall be added for taxes.
(d) On sales in amounts from 37 41 cents to 54 60 cents, both
inclusive, 3 cents shall be added for taxes.
(e) On sales in amounts from 55 61 cents to 72 80 cents, both
inclusve, 4 cents shall be added for taxes.

(f) On sales in amounts from 73 81 cents to 90 cents $1-, both
inclusive, 5 cents shall be added for taxes.

(g) On sales in amounts from 91 cents to $1.09, both inclusive, 6 cents
shall be added for taxes.

October 7, 1987

(h) On sales in amounts from $1.09 to $127, both inclusive, 7 cents
shall be added for taxes.
(i) On sales in amounts from $1.28 to $1.45, both inclusive, 8 cents
shall be added for taxes.
(j) On sales in amounts from $1.46 to $1.63, both inclusive, 9 cents
shall be added for taxes.
(k) On sales in amounts from $1.64 to $1.81, both inclusive, 10 cents
shall be added for taxes.
(1) On sales in amounts from $1.82 to $2, both inclusive, 11 cents
shall be added for taxes.
(m)(-g On sales in amounts of more than $2 $1, 5.5 5 percent shall be
charged upon each two dollar dollar of price, plus the appropriate
bracket charge upon any fractional part of two dollar a dollar.
(10) In charter counties which have adopted the discretionary
1-percent tax, the department shall promulgate by rule the brackets
applicable to following brackets shall be applicable to atl taxable
transactions which would otherwise have been transactions taxable at
the rate of 5.5 5 percent.i
(a) O8 single sales f lesss than 10 ents, a tax shall be added.
(-b O single sales in amounts from 10 events to 1 eencts beth

() On sales in amounts from events to 33 ents, both inclusive, 2
eents shal4 be added for taxes

e)4 Of sales in amounts from 3 eents to 66 events, both inclusive 4
events shall be added for taxes.

(4) On sales in amounts from 6-7 ents to 88 eents, both inclusive, S
events shall be added for taxes.
(g) On sales in amounts from 84 cents to $4 both inclusive-, eents
shall be added far taxes.
(h-) O n sales i amounts frm $1 up tao a*d including, the first $1,000
in price, 6 percent shall be charged upon each dollar of price ps the
appropriate bracket charge upon a.y fraetional part of a dollar.
(i) Oa sales in amounts of more than $1,000 in price, 6 percent shall
be added upon the first $1,000 in price, aad 5 percent shall be added
upen eaeh dollar of price in excess ef the first $1,000 in priee plus the
bracket charges upon a"y fraetienal part of a dollar as praovded fr ia
subseetion 49
Section 12. Effective upon becoming a law, subsection (1) of section
212.12, Florida Statutes, as amended by section 17 of chapter 87-6 and
section 16 of chapter 87-101, Laws of Florida, is amended to read:
212.12 Dealer's credit for collecting tax; penalties for noncompliance;
powers of Department of Revenue in dealing with delinquents;
brackets applicable to taxable transactions; records required.-
(1) Notwithstanding any other provision of law and for the purpose
of compensating persons granting licenses for and the lessors of real
"and personal property taxed hereunder, for the purpose of compensat-
ing dealers in tangible personal property, for the purpose of compen-
sating dealers providing communication services afd taxable services,
for the purpose of compensating owners of places where admissions are
collected, and for the purpose of compensating remitters of any taxes or
fees reported on the same documents utilized for the sales and use tax,
as compensation for the keeping of prescribed records and the proper
accounting and remitting of taxes by them, such seller, person, lessor,
dealer, owner and remitter (except dealers who make mail order sales)
shall be allowed 3 percent of the amount of the tax due and accounted
for and remitted to the department, in the form of a deduction in
submitting his report and paying the amount due by him; and the
department shall allow such deduction of 3 percent of the amount of
the tax to the person paying the same for remitting the tax in the

manner herein provided, for paying the amount due to be paid by him,
and as further compensation to dealers in tangible personal property
for the keeping of prescribed records and for collection of taxes and

JOURNAL OF THE HOUSE OF REPRESENTATIVES

JOURNAL OF THE HOUSE

remitting the same. However, if the amount of the tax due and
remitted to the department for the reporting period exceeds $1,000, the
3-percent allowance shall be reduced to 1 percent for all amounts in
excess of $1,000. The executive director of the department is authorized
to negotiate a collection allowance, pursuant to rules promulgated by the
department, with a dealer who makes mail order sales. The rules of the
department shall provide guidelines for establishing the collection
allowance based upon the dealer's estimated costs of collecting the tax,
the volume and value of the dealer's mail order sales to purchasers in
this state, and the administrative and legal costs and likelihood of
achieving collection of the tax absent the cooperation of the dealer.
However, in no event shall the collection allowance negotiated by the
executive director exceed 10 percent of the tax remitted for a reporting
period.
(a) The collection allowance may not be granted, nor may any
deduction be permitted, if the tax is delinquent at the time of payment.
(b) The Department of Revenue may reduce the collection allowance
by 10 percent or $50, whichever is less, if a taxpayer files an
incomplete return.
1. An "incomplete return" is, for purposes of this chapter, a return
which is lacking such uniformity, completeness, and arrangement that
the physical handling, verification, or review of the return may not be
readily accomplished.
2. The department shall adopt rules requiring such information as it
may deem necessary to ensure that the tax levied hereunder is
properly collected, reviewed, compiled, and enforced, including, but not
limited to: the amount of gross sales; the amount of taxable sales; the
amount ef taxable purehasest the amount of tax collected or due; the
amount of lawful refunds, deductions, or credits claimed; the amount
claimed as the dealer's collection allowance; the amount of penalty and
interest; the amount due with the return; and such other information
as the Department of Revenue may specify. The department shall
require that the amounts of gross sales, taxable sales, taxable
purEhases, and tax o lleeted or due shall he reported by major sales tax
sour serve tanti personal property; admissions; transient
"rentals eemmereial leases or licenses; and agricultural equipment.
Section 13. Section 218.61, Florida Statutes, is amended to read:
218.61 Local government half-cent sales tax; designated proceeds;
trust fund.-
(1) Each participating county or municipal government shall receive
a portion of the local government half-cent sales tax, as provided in
this part.
(2) Notwithstanding the provisions of s. 212.20(1), 8.857 9-697
percent of the proceeds remitted pursuant to part I of chapter 212 by a
sales tax dealer located within the county shall be transferred into the
Local Government Half-cent Sales Tax Clearing Trust Fund and
earmarked for distribution to the governing body of that county and of
each municipality within that county; however, in fiscal year 1987-
1988 the distribution into the trust fund shall be such that for the fiscal
year as a whole the total transfer shall equal 9.378 percent of the
proceeds remitted. Such moneys shall be known as the "local govern-
ment half-cent sales tax." "Proceeds" means all funds collected and
received by the Department of Revenue, including any interest or
penalties.
(3) There is created in the State Treasury the Local Government
Half-cent Sales Tax Clearing Trust Fund. Moneys in the fund are
hereby appropriated to the Department of Revenue and shall be
distributed monthly to participating units of local government.
Section 14. Effective January 1, 1988, section 212.0598, Florida
Statutes, as created by chapter 87-101, Laws of Florida, is amended to
read:
212.0598 Special provisions; air carriers.-
(1) Notwithstanding other provisions of this part to the contrary, any
air carrier utilizing mileage apportionment for corporate income tax

purposes in this state required by the United States Department of
Transportation to keep reeerds aeeerding to said department's standard
classification ef aeeeunting may elect, upon the conditions prescribed

October 7, 1987

(2)3 "Business" means any activity engaged in by any person, or
caused to be engaged in by him, with the object of private or public
gain, benefit, or advantage, either direct or indirect. Except for the
sales of any aircraft, boat, mobile home, or motor vehicle, the term
"business" shall not be construed in this chapter to include occasional

SOF REPRESENTATIVES 75

in subsection (3), to attribute to this state pursuant to
s. 212.0591(9)(b)4. use or consumption of tangible personal property it
purchases or uses. 4- to be subject te the tax imposed by this part on
services and tangible personal property aeeerding to the provisions of
this section.
2W The basis of the tax shall be the ratie of Florida mileage to ttal
mileage as determined pursuant te part tI of chapter 214 The ratio
shall be determined at the eese of the earrier's preceding fiscal year
The ratio shall Be applied eaeh meoth te the carrier's total systemwide
gross p Ourehases 4f tangibe personal property a*d series otherwise
taxable in Flerida.
(2) 34 It is the legislative intent that air carriers are hereby
determined to be susceptible to a distinct and separate classification
for taxation under the provisions of this part, if the provisions of this
section are met.
(3)(4) The election provided for in this section shall not be allowed
unless the purchaser makes a written request, in a manner prescribed
by the Department of Revenue, to be taxed under the provisions of
subsection (1) (2), and such person registers with the Department of
Revenue as a dealer and extends to his vendor at the time of purchase,
if required to do so, a certificate stating that the item or items to be
partially exempted are for the exclusive use designated herein.
Otherwise, all purchases of taxable property and services purchased in
this state shall be subject to taxation.

(4)(5 Notwithstanding other provisions of this part to the contrary,
any air carrier eligible for the election provided in subsection (1) which
does not so elect shall be subject to the tax imposed by this part on the
purchase or use of tangible personal property purchased or used in this
state, as well as other taxes imposed herein.
Section 15. Section 212.02, Florida Statutes, 1986 Supplement, as
amended by chapters 87-6, 87-101, and 87-402, Laws of Florida, is
amended to read:
212.02 Definitions.-The following terms and phrases when used in
this chapter have the meanings ascribed to them in this section, except
where the context clearly indicates a different meaning:
(1) The term "admissions" means and includes the net sum of money
after deduction of any federal taxes for admitting a person or vehicle or
persons to any place of amusement, sport, or recreation or for the
privilege of entering or staying in any place of amusement, sport, or
recreation, including, but not limited to, theaters, outdoor theaters,
shows, exhibitions, games, races, or any place where charge is made by
way of sale of tickets, gate charges, seat charges, box charges, season
pass charges, cover charges, greens fees, participation fees, entrance
fees, or other fees or receipts of anything of value measured on an
admission or entrance or length of stay or seat box accommodations in
any place where there is any exhibition, amusement, sport, or
recreation, and all dues paid to private clubs providing recreational
facilities, including but not limited to golf, tennis, swimming, yacht-
ing, and boating facilities.
(2) "Affiated group" means: an affiliated group 4f corprations, as
defined in s 1504(a) of the Internal Revenue Gode^ whose members are
includable nder s7. 4044h 4e4 er (4) of the Internal Revete n ee
and are eligible to file a eeonslidated tax return for Federal eerporate
ineeome tax purposes, or mutual insurance companies which are
members- of efe insurance holding eempany system sibjeet to
s 628.801; hewe.ver 150.4(13 )(2) shall net apply te this definition;
However, the taxpayer may eleet pursuant to rules of the department
governing the procedure for making and amending such eleetieon to
define its affiliated group in a manner which e .ehldes any member
who has ne tan nexus in this state andt any member whose Business
activities are unrelated to the business activities of other members of
the group .ewee i in e event shall a parent eerporation of an
included member bhe exekluded frome the affiliated group.

JOURNAL OF THE HOUSE OF REPRESENTATIVES

or isolated sales or transactions involving tangible personal property
or services by a person who does not hold himself out as engaged in
business, but includes other charges for the sale or rental of tangible
personal property, sales of services taxable under this part sales of or
charges of admission, communication services, all rentals and leases of
living quarters, other than low-rent housing operated under chapter
421, sleeping or housekeeping accommodations in hotels, apartment
houses, roominghouses, tourist or trailer camps, and all rentals of or
licenses in real property, other than low-rent housing operated under
chapter 421, all leases or rentals of or licenses in parking lots or
garages for motor vehicles, docking or storage spaces for boats in boat
docks or marinas as defined in this chapter and made subject to a tax
imposed by this chapter. Any tax on such sales, charges, rentals,
admissions, or other transactions made subject to the tax imposed by
this chapter shall be collected by the state, county, municipality, any
political subdivision, agency, bureau, or department, or other state or
local governmental instrumentality in the same manner as other
dealers, unless specifically exempted by this chapter.
(3)4) The terms "cigarettes," "tobacco," or "tobacco products"
referred to in this chapter include all such products as are defined or
may be hereafter defined by the laws of the state.
(4)(6) "Cost price" means the actual cost of articles of tangible
personal property or services without any deductions therefrom on
account of the cost of materials used, labor or service costs, transporta-
tion charges, or any expenses whatsoever.
(6) "Costs of performance" means direct eests determined in a
manner eensistent with general eeepted counting principles and
in aeeordance with aeeepted renditions or praetiees in the type of trade
or business in which the service provider engages.
(5)(-74 The term "department" means the Department of Revenue.
() "Employee" means any person who is not an independent
eentraetor and whose wages or remuneration are subject to tax under
the Federal Insurance Contributions At or under the Federal
Unemployment Tax Aet, o whose wages or remuneration are subject
to withholding fo federal income tax purposes.
(9) "Employer" means any person who must pay taxes on wages
under the Federal Insuranee Contributions Aet or under the Federal
Unemployment Tax Aet or who must withhold taxes from wages for
federal income tax purposes.
(6)(140 "Enterprise zone" means an area of the state authorized to be
an enterprise zone pursuant to s. 290.0055 and approved by the
secretary of the Department of Community Affairs pursuant to
s. 290.0065. This subsection shall expire and be void on December 31,
1994.
(7)(-4 "Factory-built building" means a structure manufactured in a
manufacturing facility for installation or erection as a finished
building; "factory-built building" includes, but is not limited to,
residential, commercial, institutional, storage, and industrial struc-
tures.
(8)(2) "In this state" or "in the state" means within the state
boundaries of Florida as defined in s. 1, Art. II of the Constitution of
the State of Florida and includes all territory within these limits
owned by -or ceded to the United States.
(9)(13) The term "intoxicating beverages" or "alcoholic beverages"
referred to in this chapter includes all such beverages as are so defined
or may be hereafter defined by the laws of the state.
(10)(14) "Lease,' "let," or "rental" means leasing or renting of living
quarters or sleeping or housekeeping accommodations in hotels,
apartment. houses, roominghouses, tourist or trailer camps and real
property, the same being defined as follows:
(a) Every building or other structure kept, used, maintained, or
advertised as, or held out to the public to be, a place where sleeping
accommodations are supplied for pay to transient or permanent guests
or tenants, in which 10 or more rooms are furnished for the
accommodation of such guests, and having one or more dining rooms or

cafes where meals or lunches are served to such transient or
permanent guests, such sleeping accommodations and dining rooms or

cafes being conducted in the same building or buildings in connection
therewith, shall, for the purpose of this chapter, be deemed a hotel.
(b) Any building, or part thereof, where separate accommodations for
two or more families living independently of each other are supplied to
transient or permanent guests or tenants shall for the purpose of this
chapter be deemed an apartment house.
(c) Every house, boat, vehicle, motor court, trailer court, or other
structure or any place or location kept, used, maintained, or advertised
as, or held out to the public to be, a place where living quarters or
sleeping or housekeeping accommodations are supplied for pay to
transient or permanent guests or tenants, whether in one or adjoining
buildings, shall for the purpose of this chapter be deemed a rooming-
house.
(d) In all hotels, apartment houses, and roominghouses within the
meaning of this chapter, the parlor, dining room, sleeping porches,
kitchen, office, and sample rooms shall be construed to mean "rooms."
(e) A "tourist camp" is a place where two or more tents, tent houses,
or camp cottages are located and offered by a person or municipality
for sleeping or eating accommodations, most generally to the transient
public for either a direct money consideration or an indirect benefit to
the lessor or owner in connection with a related business.
(f) A "trailer camp," "mobile home park," or "recreational vehicle
park" is a place where space is offered, with or without service
facilities, by any persons or municipality to the public for the parking
and accommodation of two or more automobile trailers, mobile homes,
or recreational vehicles which are used for lodging, for either a direct
money consideration or an indirect benefit to the lessor or owner in
connection with a related business, such space being hereby defined as
living quarters, and the rental price thereof shall include all service
charges paid to the lessor.
(g) "Lease," "let," or "rental" also means the leasing or rental of
tangible personal property and the possession or use thereof by the
lessee or rentee for a consideration, without transfer of the title of such
property, except as expressly provided to the contrary herein. The term
"lease," "let," "rental" or "service" does not mean hourly, daily, or
mileage charges, to the extent that such charges are subject to the
jurisdiction of the United States Interstate Commerce Commission,
when such charges are paid by reason of the presence of railroad cars
owned by another on the tracks of the taxpayer, or charges made
pursuant to car service agreements. However, where two taxpayers, in
connection with the interchange of facilities, rent or lease property, each
to the other, for use in providing or furnishing any of the services
mentioned in s. 166231, the term "lease or rental" means only the net
amount of rental involved.
(h) "Real property" means land, improvements thereto, and fixtures,
and is synonymous with "realty" and "real estate."
(i) "License," as used in this chapter with reference to the use of real
property, means the granting of a privilege to use or occupy a building
or a parcel of real property for any purpose.
(11)(4) "Motor fuel" means and includes what is commonly known
and sold as gasoline and fuels containing a mixture of gasoline and
other products.
(12)(-1 "Nurseryman" or "grower" means any person engaged in the
production of nursery stock or horticultural plants.
(13)7-) "Person" includes any individual, firm, copartnership, joint
adventure, association, corporation, estate, trust, business trust,
receiver, syndicate, or other group or combination acting as a unit and
includes any political subdivision, municipality, state agency, bureau,
or department and the plural as well as the singular number.
(14)(8) "Retailer" means and includes every person engaged in the
business of making sales at retail, or for distribution, or use, or
consumption, or storage to be used or consumed in this state.
(15)(9(a) "Retail sale" or a "sale at retail" means a sale to a
consumer or to any person for any purpose other than for resale in the

form of tangible personal property or services, and includes all such
transactions that may be made in lieu of retail sales or sales at retail.
"Retail sale" does net include fee sharing for Servifes described in

October 7, 1987

76

JOURNAL OF THE HOUSE OF REPRESENTATIVES

&s 475.011 by persons licensed under chapter 475. A sale of a service
shall be eensidered a sale for resale only if.
The purchaser of the service does not use or eensume the service
but aets as a broker or intermediary in preuring a service for his
elient or eustoem er. .
2r The purchaser of the service buys the service pursuant to a
written contract with the seller and sueh contract identifies the elient
or customer for whom the purchaser is buying th service;
3r The purchaser of the service separately states the value of the
service purchased at the purchase price in his charge for the service on
its subsequent sale;
4. The serVice, with its value separately stated, will e taxed under
this part in a subsequent sale, unless otherwise exempt pursuant to
s. 212.0592(1 and
5: The service is purchased pursuant to a service resale permit by a
dealer who is primarily engaged in the business of selling services. The
department shall provide by rule for the issuance and periodic renewal
every 5 years of sueh resale permits.

However, a sale, toe their than an end ase of telecommunication
services insisting of a right of aeeess for which an aeeess charge, as
defined in & 20i3f.012(4, is imposed is a sale for resale.
(b) The terms "retail sales," "sales at retail," "use," "storage," and
"consumption" include the sale, use, storage, or consumption of all
tangible advertising materials imported or caused to be imported into
this state. Tangible advertising material includes displays, display
containers, brochures, catalogs, pricelists, point-of-sale advertising,
and technical manuals or any tangible personal property which does
not accompany the product to the ultimate consumer.
(c) "Retail sales," "sale at retail," "use," "storage," and "consump-
tion" do not include materials, containers, labels, sacks, or bags
intended to be used one time only for packaging tangible personal
property for sale or for packaging in the process of providing a service
taxable under this part and do not include the sale, use, storage, or
consumption of industrial materials, including chemicals and fuels
except as provided herein, for future processing, manufacture, or
conversion into articles of tangible personal property for resale when
such industrial materials, including chemicals and fuels except as
provided herein, become a component or ingredient of the finished
product. However, said terms include the sale, use, storage, or
consumption of tangible personal property, including machinery and
equipment or parts thereof, purchased electricity, and fuels used to
power machinery, when said items are used and dissipated in
fabricating, converting, or processing tangible personal property for
sale, even though they may become ingredients or components of the
tangible personal property for sale through accident, wear, tear,
erosion, corrosion, or similar means.
(d) "Gross sales" means the sum total of all sales of tangible personal
property or series as defined herein, without any deduction whatso-
ever of any kind or character, except as provided in this chapter.
(e) The term "retail sale" includes a mail order sale, as defined in
s. 212.0596(1).
(16)(20) "Sale" means and includes:
(a) Any transfer of title or possession, or both, exchange, barter,
license, lease, or rental, conditional or otherwise, in any manner or by
any means whatsoever, of tangible personal property for a considera-
tion.
(b) The rental of living quarters or sleeping or housekeeping
accommodations in hotels, apartment houses or roominghouses, or
tourist or trailer camps, as hereinafter defined in this chapter.
(c) The producing, fabricating, processing, printing, or imprinting of
tangible personal property for a consideration for consumers who
furnish either directly or indirectly the materials used in the
producing, fabricating, processing, printing, or imprinting.

(d) The furnishing, preparing, or serving for a consideration of any
tangible personal property for consumption on or off the premises of

the person furnishing, preparing, or serving such tangible personal
property which includes the sale of meals or prepared food by an
employer to his employees.
(e) A transaction whereby the possession of property is transferred
but the seller retains title as security for the payment of the price.
(4) Any transfer, provision or rendering of services for a eonsidera

(17)(2-) "Sales price" means the total amount paid for tangible
personal property or services, including any services that are a part of
the sale and any tangible personal property that is part of the service,
valued in money, whether paid in money or otherwise, and includes
any amount for which credit is given to the purchaser by the seller,
without any deduction therefrom on account of the cost of the property
sold, the cost of materials used, labor or service cost, interest charged,
losses, or any other expense whatsoever. "Sales price" also includes the
consideration for a transaction which requires both labor and or
material to alter, remodel, maintain, adjust, or repair tangible
personal property. Trade-ins or discounts allowed and taken at the
time of sale shall not be included within the purview of this subsection.
(22) The term servicee" or servicess" as used in this part means those
activities usually provided for eensideration by the fellewing estab-
lishments listed in the SIC Manual
(a) Agrieultural Serviees (Major Group XNumber 1 7-)7
(f) Forestry Services (Major Group Number 85).A
e) Metal Mining Services (Group Number 108).
(d) Oil and Gas Field Serviees (Group Number .38).
(e) Nenmetallie (Nonfuel) Mineral Serviees (Group Number 148).
(4) Building Constractien General Contractors and Operative Build-
ers (Major Group Number 1e5)
(g) Construetion other than Building Construetion General Contrae-
ters (Major Group Number 16)-
(h) Construetion Speeial Trade Contraetors (Major Group Number

(bb) combinations of Real Estate, Insuranee, Loans, Law Offeies
(Major Group Number 66)-
(ee) Holding and other Investment Offiees (Major Group Number 67
(d4 Personal Serviees (Major Group Number 7-2-
(ee Business Serviees (Major 1 Group Number 34
...",, Numb Gr
(f4) Automotiv+e Repar, Services, and Garages (Major Group Number

(18)(23) "Special fuel" means any liquid product, gas product, or
combination thereof used in an internal combustion engine or motor to
propel any form of vehicle, machine, or mechanical contrivance. This
term includes, but is not limited to, all forms of fuel commonly or
commercially known or sold as diesel fuel or kerosene. However, the
term "special fuel" does not include butane gas, propane gas, or any
other form of liquefied petroleum gas or compressed natural gas.
(24) "SIC" means these lassifications eentained in the Standard
Industrial Classification Manual, 1972, as published by the Offiee of
Management and Budget, Executive Offiee of the Presid.ent, and as
amended in the 197-7 Supplementm
(19)(-25 "Storage" means and includes any keeping or retention in
this state of tangible personal property for use or consumption in this
state or for any purpose other than sale at retail in the regular course
of business.
(20)(-26 "Tangible personal property" means and includes personal
property which may be seen, weighed, measured, or touched or is in
any manner perceptible to the senses, including electric power or
energy, boats, motor vehicles and mobile homes as defined in
s. 320.01(1) and (2), aircraft as defined in s. 330.27, and all other types
of vehicles. The term "tangible personal property" does not include
stocks, bonds, notes, insurance, or other obligations or securities;
intangibles as defined by the intangible tax law of the state;
pari-mutuel tickets sold or issued under the racing laws of the state or
factory built buildings during construction er thereafter.
(21)(27-) "Use" means and includes the exercise of any right or power
over tangible personal property incident to the ownership thereof, or
interest therein, except that it does not include the sale at retail of that
property in the regular course of business. "Use" also means the
eensumption or enjoyment of the benefit ef services"
(22)(28) The term "use tax" referred to in this chapter includes the
use, the consumption, the distribution, and the storage as herein
defined of tangible personal property oer serv;ies.
Section 16. Paragraph (a) of subsection (1) of section 212.031, Florida
Statutes, 1986 Supplement, as amended by chapters 87-6 and 87-101,

Laws of Florida, is amended to read:
212.031 Lease or rental of or license in real property.-

October 7, 1987

(1)(a) It is declared to be the legislative intent that every person is
exercising a taxable privilege who engages in the business of renting,
leasing, letting, or granting a license for the use of any real property
unless such property is:
1. Assessed as agricultural property under s. 193.461.
2. Used exclusively as dwelling units.
3. Property subject to tax on parking, docking, or storage spaces
under s. 212.03(6).
4. Recreational property or the common elements of a condominium
when subject to a lease between the developer or owner thereof and the
condominium association in its own right or as agent for the owners of
individual condominium units or the owners of individual condomin-
ium units. However, only the lease payments on such property shall be
exempt from the tax imposed by this chapter, and any other use made
by the owner or the condominium association shall be fully taxable
under this chapter.
5. A public or private street or right-of-way occupied or used by a
utility for utility purposes.
6. A public street or road which is used for transportation purposes.
7. Property used at an airport exclusively for the purpose of aircraft
landing or aircraft taxiing or property used by an airline for the
purpose of loading or unloading passengers or property onto or from
aircraft or for fueling aircraft.
8. Property used at a port authority as defined in s. 315.02(2)
exclusively for the purpose of oceangoing vessels or tugs docking, or
such vessels mooring on property used by a port authority for the
purpose of loading or unloading passengers or cargo onto or from such
a vessel, or property used at a port authority for fueling such vessels.
9- Property used as an integral part of the per.foranee of qualified
production services as defined in s; 212.0592(18)(a).
9.140 Leased, subleased, or rented by a movie theater owner or
operator to a person providing food and drink concessionaire services
within the premises of such theater. Leasedf subleased, of rented te a
person providing feeo and drink eoncessionaire services within the
premises of a movie theater- a business operated under a permit issued
pursuant to chapter 50 o cr ehpte551, f or any publicly owned arena,
"sports stadium- eenvention hall, exhibition hall, auditorium, e
recreational facility. A person providing retail concessionaire services
involving the sale of food atnd drik or other tangible personal property
within the premises of an airport shall be subject te tan on the rental of
real property used fer that purpose, but shall net he subject te the toa
on any license to use the .pr.perzty7 F-or purposes of t4his subparagraph,
the term salt s net include the leasing ef t angibe .persona
property-
Section 17. Paragraph (b) of subsection (2) and paragraph (a) of
subsection (3) of section 212.054, Florida Statutes, 1986 Supplement,
as amended by chapter 87-6, Laws of Florida, is amended, and
subsections (7) and (8) are added to said section to read:
212.054 Discretionary sales surtax; limitations, administration, and
collection.-
(2)(a) The tax imposed by the governing body of any county
authorized to so levy pursuant to s. 212.055 shall be a discretionary
surtax on all transactions occurring in the county which are subject to
the state tax imposed on sales, use, rentals, admissions, and other
transactions by this part. The surtax, if levied, shall be computed as
the applicable rate or rates authorized pursuant to s. 212.055 times
any amount of tax imposed by and paid to the state pursuant to this
part, except this section and s. 212.055, and shall be rounded to the
nearest penny.
(b) However:
1. The tax on any sales amount above $10,000 $1,000 on any item of
tangible personal property and on long distance telephone service shall
not be subject to the surtax.

2. In the case of utility, telecommunication, or wired television
services billed on or after the effective date of any such surtax, the

JOURNAL OF THE HOUSE OF REPRESENTATIVES

entire amount of the tax for utility, telecommunication, or wired
television services shall be subject to the surtax. In the case of utility,
telecommunication, or wired television services billed after the last
day the surtax is in effect, the entire amount of the tax on said items
shall not be subject to the surtax.
3. In the case of written contracts which are signed prior to the
effective date of any such surtax for the construction of improvements
to real property or for remodeling of existing structures, the surtax
shall be paid by the contractor responsible for the performance of the
contract. However, the contractor may apply for one refund of any such
surtax paid on materials necessary for the completion of the contract.
Any application for refund shall be made no later than 15 months
following initial imposition of the surtax in that county. The applica-
tion for refund shall be in the manner prescribed by the department by
rule. A complete application shall include proof of the written contract
and of payment of the surtax. The application shall contain a sworn
statement, signed by the applicant or its representative, attesting to
the validity of the application. The department shall, within 30 days
after approval of a complete application, certify to the county
information necessary for issuance of a refund to the applicant.
Counties are hereby authorized to issue refunds for this purpose and
shall set aside from the proceeds of the surtax a sum sufficient to pay
any refund lawfully due. Any person who fraudulently obtains or
attempts to obtain a refund pursuant to this subparagraph, in addition
to being liable for repayment of any refund fraudulently obtained plus
a mandatory penalty of 100 percent of the refund, is guilty of a
misdemeanor of the second degree, punishable as provided in
s. 775.082, s. 775.083, or s. 775.084.
(3) For the purpose of this section, a transaction shall be deemed to
have occurred in a county imposing the surtax when:
(a) The dealer is located in the county and the sale includes tangible
personal property or services, except as otherwise provided herein;
provided, that the sale of any motor vehicle or mobile home of a class or
type which is required to be registered in this state or in any other state
shall be deemed to have occurred only in the county identified as the
residence address of the purchaser on the registration or title document
for such property;
(b) The event for which an admission is charged is located in the
county;
(c) The consumer of utility or wired television services is located in
the county, or the telecommunication services are provided to a
location within the county;
(d) The user of any aircraft or- boat, meter ehiele, Or mobile home of
a class or type which is required to be registered, licensed, titled, or
documented in this state or by the United States Government imported
into the county for use, consumption, distribution, or storage to be used
or consumed in the county is located in the county; however, it shall be
presumed that such items used outside the county for 6 months or
longer before being imported into the county were not purchased for
use in the county. The provisions of this paragraph shall not apply to
the use or consumption of such items upon which a like tax of equal or
greater amount has been lawfully imposed and paid outside the
county;
(e) The purchaser of any motor vehicle or mobile home of a class or
type which is required to be registered in this state is a resident of the
taxing county as determined by the address appearing on or to be
reflected on the registration document for such property;

(f) Any motor vehicle or mobile home of a class or type which is
required to be registered in this state is imported from another state into
the taxing county by a user residing therein for the purpose of use,
consumption, distribution, or storage in the taxing county; however, it
shall be presumed that such items used outside the taxing county for 6
months or longer before being imported into the county were not
purchased for use in the county;
(g)(e) The real property which is leased or rented is located in the

county;
(h)(4) The transient rental transaction occurs in the county; or

79

(i)(g) The delivery of any aircraft or0 boats motor vehicle, or mobile
home of a class or type which is required to be registered, licensed,
titled, or documented in this state or by the United States Government
is to a location in the county; however, the provisions of this paragraph
shall not apply to the use or consumption of such items upon which a
like tax of equal or greater amount has been lawfully imposed and paid
outside the county; or
(j)(h The dealer owing a use tax on purchases or leases is located in
the county.
(7) With respect to any motor vehicle or mobile home of a class or type
which is required to be registered in this state, the tax due on a
transaction occurring in the taxing county as herein provided shall be
collected from the purchaser or user incident to the titling and
registration of such property, irrespective of whether such titling or
registration occurs in the taxing county.
(8) The department shall promulgate by rule the brackets applicable
to transactions which are subject to the surtax.
Section 18. Paragraph (b) of subsection (1), paragraphs (g) and (k) of
subsection (2), and subsections (4) and (7) of section 212.06, Florida
Statutes, 1986 Supplement, as amended by chapters 87-6 and 87-99,
Laws of Florida, are amended to read:
212.06 Sales, storage, use tax; collectible from dealers; "dealer"
defined; dealers to collect from purchasers; legislative intent as to
scope of tax.-
(1)
(b) Except as otherwise provided, any person who manufactures,
produces, compounds, processes, or fabricates in any manner tangible
personal property for his own use shall pay a tax upon the cost of the
product manufactured, produced, compounded, processed, or fabricated
without any deduction therefrom on account of the cost of material
used, labor or service costs, or transportation charges, notwithstanding
the provisions of s. 212.02 defining "cost price." However, the tax
levied under this paragraph shall not be imposed upon any person who
manufactures or produces electrical power or energy, steam energy, or
other energy, when such power or energy is used directly and
exclusively in the operation of machinery or equipment that is used to
manufacture, process, compound, produce, fabricate, or prepare for
shipment tangible personal property for sale or to operate pollution
control equipment, maintenance equipment, or monitoring or control
equipment used in such operations. The manufacturing or production
of electrical power or energy that is used for space heating, lighting,
office equipment, or air conditioning or any other nonmanufacturing,
nonprocessing, noncompounding, nonproducing, nonfabricating, or
nonshipping activity is taxable. Electrical power or energy consumed
or dissipated in the transmission or distribution of electrical power or
energy for resale is also not taxable. Fabrication labor shall not be
taxable when a person is using his own equipment and his own
personnel, for his own account, as a producer, subproducer, or
coproducer of video tapes or motion pictures a qualified motion picture
as defined in 212.0592(18)(b) prepared for showing on screens or
through television, for either theatrical, commercial, advertising, or
educational purposes. Persons who manufacture factory-built buildings
for their own use in the performance of contracts for the construction or
improvement of real property shall pay a tax only upon the persons' cost
price of items used in the manufacture of such buildings.
(2)
(g) "Dealer" also means and includes every person who solicits
business either by direct representatives, indirect representatives, or
manufacturers' agents or by distribution of catalogs or other advertis-
ing matter or by any other means whatsoever and by reason thereof
receives orders for tangible personal property er services from
consumers for use, consumption, distribution, and storage for use or
consumption in the state; and such dealer shall collect the tax imposed
by this chapter from the purchaser, and no action either in law or in
equity on a sale or transaction as provided by the terms of this chapter

may be had in this state by any uch dealer unless it is affirmatively
shown that the provisions of this chapter have been fully complied
with.

October 7, 1987

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80 JOURNAL OF THE HOUSE]

(k) "Dealer" also means any person who sells, provides, er performs a
service taxable under this part. "Dealer" also means any person who
pu easess uses. or eensumes a service taxable under this part who
cannot prove that the tax levied by this part has been paid to the seller
of the taxable service
(4) On all tangible personal property imported or caused to be
imported from other states, territories, the District of Columbia, or any
foreign country, and used by him, and on all services purchased in
other states, 4trritories, the Distriet of Columbia, or any foreign
eeuntry- and used by him, the dealer as herein defined, shall pay the
tax imposed by this chapter on all articles of tangible personal
property so imported and used, and on all services so purchased and
used, the same as if such articles or services had been sold at retail for
use or consumption in this state. For the purposes of this chapter, the
use, or consumption, or distribution, or storage to be used or consumed
in this state of tangible personal property shall each be equivalent to a
sale at retail; and the tax shall thereupon immediately levy and be
collected in the manner provided herein, provided there shall be no
duplication of the tax in any event.
(7) The provisions of this chapter do not apply in respect to the use or
consumption of tangible personal property or services, or distribution
or storage of tangible personal property or services for use or
consumption in this state, upon which a like tax equal to or greater
than the amount imposed by this chapter has been lawfully imposed
and paid in another state, territory of the United States, or the District
of Columbia. The proof of payment of such tax shall be made according
to rules and regulations of the department. If the amount of tax paid in
another state, territory of the United States, or the District of
Columbia is not equal to or greater than the amount of tax imposed by
this chapter, then the dealer shall pay to the department an amount
sufficient to make the tax paid in the other state, territory of the
United States, or the District of Columbia and in this state equal to the
amount imposed by this chapter.
Section 19. (1) Paragraph (a) of subsection (1) and subsections (2), (4)
and (9) of section 212.07, Florida Statutes, 1986 Supplement, as
amended by section 13 of chapter 87-6, Laws of Florida, are amended
to read:
212.07 Sales, storage, use tax; tax added to purchase price; dealer
not to absorb; liability of purchasers who cannot prove payment of the
tax; penalties; general exemptions.-
(1)(a) The privilege tax herein levied measured by retail sales shall
be collected by the dealers from the purchaser or consumer. Except as
otherwise speeifieally provided- the sales and use tax on services
herein levied measured by retail sales shall likewise be eelleeted fby
the dealers from the purehaser r eensumer.
(2) A dealer shall, as far as practicable, add the amount of the tax
imposed under this chapter to the sale price, and the amount of the tax
shall be separately stated as Florida tax on any charge ticket, sales
slip, invoice, or other tangible evidence of sale. Such tax shall
constitute a part of such price, charge, or proof of sale which shall be a
debt from the purchaser or consumer to the dealer, until paid, and
shall be recoverable at law in the same manner as other debts. Where
it is impracticable, due to the nature of the business practices within
an industry, to separately state Florida tax on any charge ticket, sales
slip, invoice, or other tangible evidence of sale, the department may
establish an effective tax rate for such industry. The department may
also amend this effective tax rate as the industry's pricing or practices
change. Except as otherwise specifically provided, Any dealer who
neglects, fails, or refuses to collect the tax herein provided upon any,
every, and all retail sales made by him or his agents or employees of
tangible personal property or services which is are subject to the tax
imposed by this chapter shall be liable for and pay the tax himself.
(4) A dealer engaged in any business or in selling any services
taxable under this chapter may not advertise or hold out to the public,

in any manner, directly or indirectly, that he will absorb all or any
part of the tax, or that he will relieve the purchaser of the payment of
all or any part of the tax, or that the tax will not be added to the
selling price of the property or services sold or released or, when added,
that it or any part thereof will be refunded either directly or indirectly

by any method whatsoever. A person who violates this provision with
respect to advertising or refund is guilty of a misdemeanor of the
second degree, punishable as provided in s. 775.082 or s. 775.083. A
second or subsequent offense constitutes a misdemeanor of the first
degree, punishable as provided in s. 775.082 or s. 775.083.
(9) Any person who has purchased at retail, used, consumed,
distributed, or stored for use or consumption in this state tangible
personal property, admissions, communication or other services tax-
able under this part, or leased tangible personal property, or who has
leased, occupied, or used or was entitled to use any real property, space
or spaces in parking lots or garages for motor vehicles or docking or
storage space, or spaces for boats in boat docks or marinas and cannot
prove that the tax levied by this chapter has been paid to his vendor,
lessor, or other person is directly liable to the state for any tax,
interest, or penalty due on any such taxable transactions.
(2) Effective July 1, 1988, subsection (4) of section 212.07, Florida
Statutes, 1986 Supplement, as further amended by section 85 of
chapter 87-6 and section 53 of chapter 87-101, Laws of Florida, is
amended to read:
212.07 Sales, storage, use tax; tax added to purchase price; dealer
not to absorb; liability of purchasers who cannot prove payment of the
tax; penalties; general exemptions.-
(4) A dealer engaged in any business or in selling any services
taxable under this chapter may not advertise or hold out to the public,
in any manner, directly or indirectly, that he will absorb all or any
part of the tax, or that he will relieve the purchaser of the payment of
all or any part of the tax, or that the tax will not be added to the
selling price of the property or series sold or released or, when added,
that it or any part thereof will be refunded either directly or indirectly
by any method whatsoever. A person who violates this provision with
respect to advertising or refund is guilty of a misdemeanor of the
second degree, punishable as provided in s. 775.082, s. 775.083, or
s. 775.084. A second or subsequent offense constitutes a misdemeanor
of the first degree, punishable as provided in s. 775.082, s. 775.083, or
s. 775.084.
Section 20. (1) Paragraph (a) of subsection (2), paragraph (a) of
subsection (4), paragraphs (b), (c) and (d) of subsection (5) and
paragraphs (e) and (o) of subsection (7) of section 212.08, Florida
Statutes, 1986 Supplement, as amended by section 14 of chapter 87-6,
chapter 87-72, and section 13 of chapter 87-101, Laws of Florida, are
amended, and paragraph (v) is added to subsection (7) of said section,
to read:
212.08 Sales, rental, use, consumption, distribution, and storage tax;
specified exemptions.-The sale at retail, the rental, the use, the
consumption, the distribution, and the storage to be used or consumed
in this state of the following are hereby specifically exempt from the
tax imposed by part I of this chapter.
(2) EXEMPTIONS; MEDICAL.-
(a) There shall be exempt from the tax imposed by this chapter any
product, supply, or medicine dispensed in a retail establishment by a
pharmacist licensed by the state, according to an individual prescrip-
tion or prescriptions written by a prescriber authorized by law to
prescribe medicinal drugs; hypodermic needles; hypodermic syringes;
chemical compounds and test kits used for the diagnosis or treatment
of human disease, illness, or injury; and common household remedies
recommended and generally sold for internal or external use in the
cure, mitigation, treatment, or prevention of illness or disease in
human beings, but not including cosmetics or toilet articles, notwith-
standing the presence of medicinal ingredients therein, according to a
list prescribed and approved by the Department of Health and
Rehabilitative Services, which list shall be certified to the Department
of Revenue from time to time and included in the rules promulgated by
the Department of Revenue. There shall also be exempt from the tax

JOURNAL OF THE HOUSE OF REPRESENTATIVES

funerals. Funeral directors shall pay tax on all tangible personal
property used by them in their business.
(4) EXEMPTIONS; ITEMS BEARING OTHER EXCISE TAXES,
ETC.
(a) Also exempt are:
1. Water (not exempting mineral water or carbonated water).
2. All fuels used by a public or private utility, including any
municipal corporation or rural electric cooperative association, in the
generation of electric power or energy for sale. Fuel other than motor
fuel and special fuel is taxable as provided in this part, with the
exception of fuel expressly exempt herein. However, diesel fuel and
kerosene used in any tractor, vehicle, or other farm equipment which
is used exclusively on a farm or for processing farm products on the
farm are taxable as provided in part II. Motor fuels and special fuels
are taxable as provided in part II, with the exception of those motor
fuels and special fuels used by railroad locomotives or vessels to
transport persons or property in interstate or foreign commerce which
are taxable under this part only to the extent provided herein. The
basis of the tax shall be the ratio of intrastate mileage to interstate or
foreign mileage traveled by the carrier's railroad locomotives or vessels
which were used in interstate or foreign commerce and which had at
least some Florida mileage during the previous fiscal year of the
carrier, such ratio to be determined at the close of the fiscal year of the
carrier. This ratio shall be applied each month to the total Florida
purchases made in this state of gasoline and other fuels to establish
that portion of the total used and consumed in intrastate movement
and subject to tax under this part. Fuels used exclusively in intrastate
commerce do not qualify for the proration of tax.
3. The transmission or wheeling of electricity.
(5) EXEMPTIONS; ACCOUNT OF USE.-
(b) Machinery and equipment used to increase productive output.-
1. Industrial machinery and equipment purchased for use in new
businesses which manufacture, process, compound, or produce for sale
items of tangible personal property at fixed locations aed services
directly related to the installation of seh machinery and equipment,
excluding eenstruetion services, are exempt from the tax imposed by
this chapter upon an affirmative showing by the taxpayer to the
satisfaction of the department that such items are used in a new
business in this state. Such purchases must be made prior to the date
the business first begins its productive operations, and delivery of the
purchased item must be made within 12 months of that date.
2. Industrial machinery and equipment purchased for use in
expanding manufacturing facilities or plant units which manufacture,
process, compound, or produce for sale items of tangible personal
property at fixed locations in this state aid services directly related to
the installation of sueh machinery and equipment, exuekding een-
struetion services, are exempt from any amount of tax imposed by this
chapter in excess of $100,000 per calendar year upon an affirmative
showing by the taxpayer to the satisfaction of the department that
such items are used to increase the productive output of such expanded
business by not less than 10 percent.
3.a. To receive an exemption provided by subparagraph 1. or
subparagraph 2., a qualifying business entity shall apply to the
department for a temporary tax exemption permit. The application
shall state that a new business exemption or expanded business
exemption is being sought. Upon a tentative affirmative determination
by the department pursuant to subparagraph 1. or subparagraph 2.,
the department shall issue such permit.
b. The applicant shall be required to maintain all necessary books
and records to support the exemption. Upon completion of purchases of
qualified machinery3 and equipment3 or services pursuant to subpara-
graph 1. or subparagraph 2., the temporary tax permit shall be
delivered to the department or returned to the department by certified
or registered mail. The department shall have 4 years from the date of

delivery or date of receipt to perform an audit of such purchases,
notwithstanding the provisions of s. 212.14(6).

c. If, in a subsequent audit conducted by the department, it is
determined that the machinery3 and equipment3 er services purchased
as exempt under subparagraph 1. or subparagraph 2. did not meet the
criteria mandated by this paragraph or if commencement of production
did not occur, the amount of taxes exempted at the time of purchase
shall immediately be due and payable to the department by the
business entity, together with the appropriate interest and penalty,
computed from the date of purchase, in the manner prescribed by this
chapter.
d. In the event a qualifying business entity fails to apply for a
temporary exemption permit or if the tentative determination by the
department required to obtain a temporary exemption permit is
negative, a qualifying business entity shall receive the exemption
provided in subparagraph 1. or subparagraph 2. through a refund of
previously paid taxes. No refund may be made for such taxes unless
the criteria mandated by subparagraph 1. or subparagraph 2. have
been met and commencement of production has occurred.
4. The department shall promulgate rules governing applications for,
issuance of, and the form of temporary tax exemption permits;
provisions for recapture of taxes; and the manner and form of refund
applications and may establish guidelines as to the requisites for an
affirmative showing of increased productive output, commencement of
production, and qualification for exemption.
5. The exemptions provided in subparagraphs 1. and 2. do not apply
to machinery3 or equipment or services purchased or used by electric
utility companies, communications companies, phosphate or other solid
minerals severance, mining, or processing operations, oil or gas
exploration or production operations, printing or publishing firms, any
firm subject to regulation by the Division of Hotels and Restaurants of
the Department of Business Regulation, or any firm which does not
manufacture, process, compound, or produce for sale items of tangible
personal property.
6. For the purposes of the exemptions provided in subparagraphs 1.
and 2., these terms have the following meanings:
a. "Industrial machinery and equipment" means "section 38 proper-
ty" as defined in s. 48(a)(1)(A) and (B)(i) of the Internal Revenue Code,
provided "industrial machinery and equipment" shall be construed by
regulations adopted by the Department of Revenue to mean tangible
property used as an integral part of the manufacturing, processing,
compounding, or producing for sale of items of tangible personal
property. Such term includes parts and accessories only to the extent
that the exemption thereof is consistent with the provisions of this
paragraph.
b. "Productive output" means the number of units actually produced
by a single plant or operation in a single continuous 12-month period,
irrespective of sales. Increases in productive output shall be measured
by the output for 12 continuous months immediately following the
completion of installation of such machinery or equipment over the
output for the 12 continuous months immediately preceding such
installation. However, if a different 12-month continuous period of
time would more accurately reflect the increase in productive output of
machinery and equipment purchased to facilitate an expansion, the
increase in productive output may be measured during that 12-month
continuous period of time if such time period is mutually agreed upon
by the Department of Revenue and the expanding business prior to the
commencement of production; but in no case may such time period
begin later than 2 years following the completion of installation of the
new machinery and equipment. The units used to measure productive
output shall be physically comparable between the two periods,
irrespective of sales.
(c) Machinery3 and equipment3 or services used in production of
electrical or steam energy.-The purchase of machinery and equip-
ment for use at a fixed location, which equipment and machinery are
necessary in the production of electrical or steam energy resulting
from the burning of boiler fuels other than residual oil, is and services
directly related to the installation of sueh machinery and equipment,
exeludi.ng eeanstretion services, are exempt from the tax imposed by

this chapter. Such electrical or steam energy must be primarily for use
in manufacturing, processing, compounding, or producing for sale

October 7, 1987

81

82 JOURNAL OF THE HOUSI

items of tangible personal property in this state. However, the
exemption provided for in this paragraph shall not be allowed unless
the purchaser signs an affidavit stating that the item or items to be
exempted are for the exclusive use designated herein. Any person
furnishing a false affidavit to the vendor for the purpose of evading
payment of any tax imposed under chapter 212 shall be subject to the
penalty set forth in s. 212.085 and as otherwise provided by law.

(d) Machinery, and equipment or services used under federal
procurement contract.-
1. Industrial machinery and equipment purchased by an expanding
business which manufactures tangible personal property pursuant to
federal procurement regulations at fixed locations in this state and
services directly related to the installation of seh machinery and
equipment, excluding eenstruetion services are partially exempt from
the tax imposed in this chapter on that portion of the tax which is in
excess of $100,000 per calendar year upon an affirmative showing by
the taxpayer to the satisfaction of the department that such items are
used to increase the implicit productive output of the expanded
business by not less than 10 percent. The percentage of increase is
measured as deflated implicit productive output for the calendar year
during which the installation of the machinery or equipment is
completed or during which commencement of production utilizing such
items is begun divided by the implicit productive output for the
preceding calendar year. In no case may the commencement of
production begin later than 2 years following completion of installation
of the machinery or equipment.

2. The amount of the exemption allowed shall equal the taxes
otherwise imposed by this chapter in excess of $100,000 per calendar
year on qualifying industrial machinery; or equipment, or sewrvies
reduced by the percentage of gross receipts from cost-reimbursement
type contracts attributable to the plant or operation to total gross
receipts so attributable, accrued for the year of completion or
commencement.
3. The exemption provided by this paragraph shall inure to the
taxpayer only through refund of previously paid taxes. Such refund
shall be made within 30 days of formal approval by the department of
the taxpayer's application, which application may be made on an
annual basis following installation of the machinery or equipment.
4. For the purposes of this paragraph, the term:
a. "Cost-reimbursement type contracts" has the same meaning as in
32 C.F.R. s. 3-405.
b. "Deflated implicit productive output" means the product of
implicit productive output times the quotient of the national defense
implicit price deflator for the preceding calendar year divided by the
deflator for the year of completion or commencement.

c. "Eligible costs" means the total direct and indirect costs, as
defined in 32 C.F.R. ss. 15-202 and 15-203, excluding general and
administrative costs, selling expenses, and profit, defined by the
uniform cost-accounting standards adopted by the Cost-Accounting
Standards Board created pursuant to 50 U.S.C. s. 2168.
d. "Implicit productive output" means the annual eligible costs
attributable to all contracts or subcontracts subject to federal procure-
ment regulations of the single plant or operation at which the
machinery or equipment is used.
e. "Industrial machinery and equipment" means "section 38 proper-
ty" as defined in s. 48(a)(1)(A) and (B)(i) of the Internal Revenue Code,
provided such industrial machinery and equipment qualified as an
eligible cost under federal procurement regulations and are used as an
integral part of the tangible personal property production process.
Such term includes parts and accessories only to the extent that the
exemption of such parts and accessories is consistent with the
provisions of this paragraph.

f. "National defense implicit price deflator" means the national
defense implicit price deflator for the gross national product as
determined by the Bureau of Economic Analysis of the United States
Department of Commerce.

E

community care for the elderly, and other social welfare services which
clearly and substantially benefit a client population which is disad-
vantaged or suffers a hardship;
(V) Medical research for the relief of disease, injury, or disability;

OF REPRESENTATIVES October 7, 1987

5. The exclusions provided in subparagraph (b)5. apply to this
exemption. This exemption applies only to machinery or equipment
purchased pursuant to production contracts with the United States
Department of Defense and Armed Forces, the National Aeronautics
and Space Administration, and other federal agencies for which the
contracts are classified for national security reasons. In no event shall
the provisions of this paragraph apply to any expanding business the
increase in productive output of which could be measured under the
provisions of sub-subparagraph (b)6.b. as physically comparable be-
tween the two periods.
(7) MISCELLANEOUS EXEMPTIONS.-
(e) Film rentals.-Film rentals are exempt when an admission is
charged for viewing such film., an4d license fees and direct charges f.
filmSS videotapes, and teranscriptiens used by television or radio
stations or networks are exempt. However, this exemption shall noet be
eenstried to exempt the sa4e or rse of advert-ising.
(o) Religious, charitable, scientific, educational, and veterans' insti-
tutions and organizations.-
1. There are exempt from the tax imposed by part I of this chapter
transactions involving:
a. Sales or leases directly to churches or sales or leases of tangible
personal property or services by churches;
b. Sales or leases to nonprofit religious, nonprofit charitable,
nonprofit scientific, or nonprofit educational institutions when used in
carrying on their customary nonprofit religious, nonprofit charitable,
nonprofit scientific, or nonprofit educational activities, including
church cemeteries; and
c. Sales or leases to the state headquarters of qualified veterans'
organizations and the state headquarters of their auxiliaries when
used in carrying on their customary veterans' organization activities.
If a qualified veterans' organization or its auxiliary does not maintain
a permanent state headquarters, then transactions involving sales or
leases to such organization and used to maintain the office of the
highest ranking state official are exempt from the tax imposed by this
part.
2. The provisions of this section authorizing exemptions from tax
shall be strictly defined, limited, and applied in each category as
follows:
a. "Religious institutions" means churches, synagogues, and estab-
lished physical places for worship at which nonprofit religious services
and activities are regularly conducted and carried on. The term
"religious institutions" includes nonprofit corporations the sole purpose
of which is to provide free transportation services to church members,
their families, and other church attendees. The term "religious
institutions" also includes state, district, or other governing or
administrative offices the function of which is to assist or regulate the
customary activities of religious organizations or members.
b. "Charitable institutions" means only nonprofit corporations
qualified as nonprofit pursuant to s. 501(c)(3), United States Internal
Revenue Code, 1954, as amended, and other nonprofit entities, the sole
or primary function of which is to provide, or to raise funds for
organizations which provide, one or more of the following services if a
reasonable percentage of such service is provided free of charge, or at a
substantially reduced cost, to persons, animals, or organizations that
are unable to pay for such service:
(I) Medical aid for the relief of disease, injury, or disability;
(II) Regular provision of physical necessities such as food, clothing,
or shelter;
(III) Services for the prevention of, or rehabilitation of persons from,
alcoholism or drug abuse; the prevention of suicide; or the alleviation
of mental, physical, or sensory health problems;
(IV) Social welfare services including adoption placement, child care,

(VI) Legal services; or
(VII) Food, shelter, or medical care for animals or adoption services,
cruelty investigations, or education programs concerning animals;
and the term includes groups providing volunteer manpower to
organizations designated as charitable institutions hereunder.
c. "Scientific organizations" means scientific organizations which
hold current exemptions from federal income tax under s. 501(c)(3) of
the Internal Revenue Code and also means organizations the purpose
of which is to protect air and water quality or the purpose of which is
to protect wildlife and which hold current exemptions from the federal
income tax under s. 501(c)(3) of the Internal Revenue Code.
d. "Educational institutions" means state tax-supported or parochial,
church and nonprofit private schools, colleges, or universities which
conduct regular classes and courses of study required for accreditation
by, or membership in, the Southern Association of Colleges and
Schools, the Department of Education, the Florida Council of Indepen-
dent Schools, or the Florida Association of Christian Colleges and
Schools, Inc., or which conduct regular classes and courses of study
accepted for continuing education credit by the American Medical
Association or the American Dental Association. Nonprofit libraries,
art galleries, and museums open to the public are defined as
educational institutions and are eligible for exemption. The term
"educational institutions" includes private nonprofit organizations the
purpose of which is to raise funds for schools teaching grades
kindergarten through high school, colleges, and universities. The term
"educational institutions" includes any nonprofit newspaper of free or
paid circulation primarily on university or college campuses which
holds a current exemption from federal income tax under s. 501(c)(3) of
the Internal Revenue Code, and any educational television or radio
network or system established pursuant to s. 229.805 or s. 229.8051
and any nonprofit television or radio station which is a part of such
network or system and which holds a current exemption from federal
income tax under s. 501(c)(3) of the Internal Revenue Code. The term
"educational institutions" also includes state, district, or other govern-
ing or administrative offices the function of which is to assist or
regulate the customary activities of educational organizations or
members.
e. "Veterans' organizations" means nationally chartered or recog-
nized veterans' organizations, including, but not limited to, Florida
chapters of the Paralyzed Veterans of America, Catholic War Veterans
of the U.S.A., and Jewish War Veterans of the U.S.A. and the Disabled
American Veterans, Department of Florida, Inc., which hold current
exemptions from federal income tax under s. 501(c)(4) or s. 501(c)(19)
of the Internal Revenue Code.
(v)l. Also exempted are professional, insurance, or personal service
transactions which involve sales as inconsequential elements for which
no separate charges are made.
2. The above-exempted personal service transactions do not exempt the
sale of information services involving the furnishing of printed,
mimeographed, or multigraphed matter, or matter duplicating written
or printed matter in any other manner, other than professional services
and services of employees, agents, or other persons acting in a
representative or fiduciary capacity or information services furnished to
newspapers and radio and television stations. The term "information
services" means and includes the services of collecting, compiling, or
analyzing information of any kind or nature and furnishing reports
thereof to other persons.
(2) Effective July 1, 1988, paragraph (b) of subsection (5) of section
212.08, Florida Statutes, 1986 Supplement, as further amended by
section 59 of chapter 87-6 and section 34 of chapter 87-101, Laws of
Florida, is amended to read:
212.08 Sales, rental, use, consumption, distribution, and storage tax;
specified exemptions.-The sale at retail, the rental, the use, the
consumption, the distribution, and the storage to be used or consumed
in this state of the following are hereby specifically exempt from the
tax imposed by part I of this chapter.

1. Industrial machinery and equipment purchased for use in new
businesses which manufacture, process, compound, or produce for sale
items of tangible personal property at fixed locations a*d stes
directly related t the installation of sueh machinery y ad equipment
"exeludind*g eenstruetion se*riees are exempt from the tax imposed by
this chapter upon an affirmative showing by the taxpayer to the
satisfaction of the department that such items are used in a new
business in this state. Such purchases must be made prior to the date
the business first begins its productive operations, and delivery of the
purchased item must be made within 12 months of that date.

2. Industrial machinery and equipment purchased for use in
expanding manufacturing facilities or plant units which manufacture,
process, compound, or produce for sale items of tangible personal
property at fixed locations in this state and services directly related to
the installation of sueh machinery and equipment, excluding eeo-
struetion services, are exempt from any amount of tax imposed by this
chapter in excess of $100,000 per calendar year upon an affirmative
showing by the taxpayer to the satisfaction of the department that
such items are used to increase the productive output of such expanded
business by not less than 10 percent.

3.a. To receive an exemption provided by subparagraph 1. or
subparagraph 2., a qualifying business entity shall apply to the
department for a temporary tax exemption permit. The application
shall state that a new business exemption or expanded business
exemption is being sought. Upon a tentative affirmative determination
by the department pursuant to subparagraph 1. or subparagraph 2.,
the department shall issue such permit.

b. The applicant shall be required to maintain all necessary books
and records to support the exemption. Upon completion of purchases of
qualified machinery, and equipment; or services pursuant to subpara-
graph 1. or subparagraph 2., the temporary tax permit shall be
delivered to the department or returned to the department by certified
or registered mail.

c. If, in a subsequent audit conducted by the department, it is
determined that the machinery- and equipment, er services purchased
as exempt under subparagraph 1. or subparagraph 2. did not meet the
criteria mandated by this paragraph or if commencement of production
did not occur, the amount of taxes exempted at the time of purchase
shall immediately be due and payable to the department by the
business entity, together with the appropriate interest and penalty,
computed from the date of purchase, in the manner prescribed by this
chapter.

d. In the event a qualifying business entity fails to apply for a
temporary exemption permit or if the tentative determination by the
department required to obtain a temporary exemption permit is
negative, a qualifying business entity shall receive the exemption
provided in subparagraph 1. or subparagraph 2. through a refund of
previously paid taxes. No refund may be made for such taxes unless
the criteria mandated by subparagraph 1. or subparagraph 2. have
been met and commencement of production has occurred.

4. The department shall promulgate rules governing applications for,
issuance of, and the form of temporary tax exemption permits;
provisions for recapture of taxes; and the manner and form of refund
applications and may establish guidelines as to the requisites for an
affirmative showing of increased productive output, commencement of
production, and qualification for exemption.

5. The exemptions provided in subparagraphs 1. and 2. do not apply
to machinery, or equipment, or services purchased or used by electric
utility companies, communications companies, phosphate or other solid
minerals severance, mining, or processing operations, oil or gas
exploration or production operations, printing or publishing firms, any
firm subject to regulation by the Division of Hotels and Restaurants of
the Department of Business Regulation, or any firm which does not
manufacture, process, compound, or produce for sale items of tangible
personal property.

6. For the purposes of the exemptions provided in subparagraphs 1.
and 2., these terms have the following meanings:

October 7, 1987

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JOURNAL OF THE HOUSE OF REPRESENTATIVES

a. "Industrial machinery and equipment" means "section 38 proper-
ty" as defined in s. 48(a)(1)(A) and (B)(i) of the Internal Revenue Code,
provided "industrial machinery and equipment" shall be construed by
regulations adopted by the Department of Revenue to mean tangible
property used as an integral part of the manufacturing, processing,
compounding, or producing for sale of items of tangible personal
property. Such term includes parts and accessories only to the extent
that the exemption thereof is consistent with the provisions of this
paragraph.
b. "Productive output" means the number of units actually produced
by a single plant or operation in a single continuous 12-month period,
irrespective of sales. Increases in productive output shall be measured
by the output for 12 continuous months immediately following the
completion of installation of such machinery or equipment over the
output for the 12 continuous months immediately preceding such
installation. However, if a different 12-month continuous period of
time would more accurately reflect the increase in productive output of
machinery and equipment purchased to facilitate an expansion, the
increase in productive output may be measured during that 12-month
continuous period of time if such time period is mutually agreed upon
by the Department of Revenue and the expanding business prior to the
commencement of production; but in no case may such time period
begin later than 2 years following the completion of installation of the
new machinery and equipment. The units used to measure productive
output shall be physically comparable between the two periods,
irrespective of sales.
Section 21. Paragraph (a) of subsection (3), paragraph (c) of
subsection (4), and paragraph (a) of subsection (6) of section 212.095,
Florida Statutes, as amended by chapters 87-6 and 87-101, Laws of
Florida, are amended to read:
212.095 Refunds.
(3)(a) When a sale is made to a person who claims to be entitled to a
refund under this section, the seller shall make out a sales invoice,
which shall contain the following information:
1. The name and business address of the purchaser.
2. A description of the item or services sold.
3. The date on which the purchase was made.
4. The price and amount of tax paid for the item er services.
5. The name and place of business of the seller at which the sale was
made.
6. The refund permit number of the purchaser.
(4)
(c) Refund application forms shall include at a minimum the
following information:
1. The name and address of the person claiming the refund.
2. The refund permit number of such person.
3. The location at which the items er services for which a refund is
claimed are used.
4. A description of each such item or service and the purpose for
which such item or service was acquired.
5. Copies of the sales invoices of items or services for which a refund
is being claimed.
(6)(a) Each registered dealer shall, in accordance with the require-
ments of the department, keep at his principal place of business in this
state or at the location where the sale is made a complete record or
duplicate sales tickets of all items or services sold by him for which a
refund provided in this section may be claimed, which records shall
contain the information required in paragraph (3)(a).
Section 22. Paragraph (d) of subsection (1) of section 212.11, Florida
Statutes, as created by chapter 87-6, Laws of Florida, and amended by
chapter 87-101, Laws of Florida, is hereby repealed.
Section 23. Paragraph (b) of subsection (5) and subsections (7) and

(9) of section 212.12, Florida Statutes, 1986 Supplement, as amended
by chapters 87-6 and 87-101, Laws of Florida, are amended to read:

212.12 Dealer's credit for collecting tax; penalties for noncompliance;
powers of Department of Revenue in dealing with delinquents;
brackets applicable to taxable transactions; records required.-
(5)
(b) In the event any dealer or other person charged herein fails or
refuses to make his records available for inspection so that no audit or
examination has been made of the books and records of such dealer or
person, fails or refuses to register as a dealer, or fails to make a report
and pay the tax as provided by this chapter; or makes a grossly
incorrect report, or makes a report that is false or fraudulent, then, in
such event, it shall be the duty of the department to make an
assessment from an estimate based upon the best information then
available to it for the taxable period of retail sales of such dealer, the
gross proceeds from rentals, the total admissions received, amounts
received from leases of tangible personal property by such dealer, or of
the cost price of all articles of tangible personal property imported by
the dealer for use or consumption or distribution or storage to be used
or consumed in this state or of the sales or eest priee of at services the
sale or use of which is taxable under this part, together with interest,
plus penalty, if such have accrued, as the case may be. Then the
department shall proceed to collect such taxes, interest, and penalty on
the basis of such assessment, which shall be considered prima facie
correct; and the burden to show the contrary shall rest upon the dealer,
seller, owner, or lessor, as the case may be.
(7) In the event the dealer has imported tangible personal property
or has acquired services outside e e e ste for sale or use in this state
and he fails to produce an invoice showing the cost price of the articles
or services, as defined in this chapter, which are subject to tax, or the
invoice does not reflect the true or actual cost price as defined herein,
then the department shall ascertain, in any manner feasible, the true
cost price, and assess and collect the tax thereon with interest plus
penalties, if such have accrued on the true cost price as assessed by it.
The assessment so made shall be considered prima facie correct, and
the duty shall be on the dealer to show to the contrary.
(9) Taxes imposed by this chapter upon the privilege of the use,
consumption, storage for consumption, or sale of tangible personal
property, admissions, license fees, rentals, and communication serv-
ices- ad upon the sale or use of services as herein taxed shall be
collected upon the basis of an addition of the tax imposed by this
chapter to the total price of such admissions, license fees, rentals,
communication or other services, or sale price of such article or articles
that are purchased, sold, or leased at any one time by or to a customer
or buyer; and the dealer, or person charged herein, is required to pay a
privilege tax in the amount of the tax imposed by this chapter on the
total of his gross sales of tangible personal property, admissions,
license fees, rentals, and communication services or to eolleet a tax
upon the sale or use of services, and such person or dealer shall add the
tax imposed by this chapter to the price, license fee, rental, or
admissions, and communication or other services and collect the total
sum from the purchaser, admittee, licensee, lessee, or consumer.
Notwithstanding the rate of taxes imposed upon the privilege of sales,
admissions, license fees, rentals, and communication services, or upon
the sale or use of services, the following brackets shall be applicable to
all transactions taxable at the rate of 5 percent:
(a) On single sales of less than 10 cents, no tax shall be added.
(b) On single sales in amounts from 10 cents to 20 cents, both
inclusive, 1 cent shall be added for taxes.
(c) On sales in amounts from 21 cents to 40 cents, both inclusive, 2
cents shall be added for taxes.
(d) On sales in amounts from 41 cents to 60 cents, both inclusive, 3
cents shall be added for taxes.
(e) On sales in amounts from 61 cents to 80 cents, both inclusive, 4
cents shall be added for taxes.
(f) On sales in amounts from 81 cents to $1, both inclusive, 5 cents
shall be added for taxes.
(g) On sales in amounts of more than $1, 5 percent shall be charged

upon each dollar of price, plus the appropriate bracket charge upon any
fractional part of a dollar.

October 7, 1987

84

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Section 24. (1) Subsections (2), (3) and (4) of section 212.13, Florida
Statutes, as amended by section 18 of chapter 87-6, Laws of Florida,
are amended to read:
212.13 Records required to be kept; power to inspect; audit
procedure.-
(2) Each dealer, as defined in this chapter, shall secure, maintain,
and keep for a period of 3 years a complete record of tangible personal
property orv seiees received, used, sold at retail, distributed or stored,
leased or rented by said dealer, together with invoices, bills of lading,
gross receipts from such sales, and other pertinent records and papers
as may be required by the department for the reasonable administra-
tion of this chapter; and all such records which are located or
maintained in this state shall be open for inspection by the department
at all reasonable hours at such dealer's store, sales office, general
office, warehouse, or place of business located in this state. Any dealer
who maintains such books and records at a point outside this state
must make such books and records available for inspection by the
department where the general records are kept. Any dealer subject to
the provisions of this chapter who violates these provisions is guilty of
a misdemeanor of the second degree, punishable as provided in
s. 775.082 or s. 775.083.
(3) For the purpose of enforcement of this chapter, every manufactur-
er and seller of tangible personal property or services licensed within
this state is required to permit the department to examine his books
and records at all reasonable hours; and, upon his refusal, the
department may require him to permit such examination by resort to
the circuit courts of this state, subject however to the right of removal
of the cause to the judicial circuit wherein such person's business is
located or wherein such person's books and records are kept, provided
further that such person's books and records are kept within the state.
(4) For the further purpose of enforcement of this chapter, every
wholesaler of tangible personal property or services licensed within
this state is required to permit the department to examine his books
and records at all reasonable hours. He must also maintain such books
and records for a period of not less than 3 years in order to disclose the
sales of all goods or services sold, and to whom sold, and also the
amount of items sold, in such form and in such manner as the
department may reasonably require, and so as to permit the depart-
ment to determine the volume of goods or services sold by wholesalers
to dealers, as defined under this chapter, and the dates and amounts of
sales made. The department may require any manufacturer or
wholesaler who refuses to keep such records or to permit such
inspection through the circuit courts of Florida to submit to such
inspection, subject however to the right of removal of the cause as
hereinbefore provided in this section.
(2) Effective July 1, 1988, subsection (2) of section 212.13, Florida
Statutes, as amended by section 89 of chapter 87-6 and section 57 of
chapter 87-101, Laws of Florida, is amended to read:
212.13 Records required to be kept; power to inspect; audit
procedure.-
(2) Each dealer, as defined in this chapter, shall secure, maintain,
and keep for a period of 3 years a complete record of tangible personal
property or services received, used, sold at retail, distributed or stored,
leased or rented by said dealer, together with invoices, bills of lading,
gross receipts from such sales, and other pertinent records and papers
as may be required by the department for the reasonable administra-
tion of this chapter; and all such records which are located or
maintained in this state shall be open for inspection by the department
at all reasonable hours at such dealer's store, sales office, general
office, warehouse, or place of business located in this state. Any dealer
who maintains such books and records at a point outside this state
must make such books and records available for inspection by the
department where the general records are kept. Any dealer subject to
the provisions of this chapter who violates these provisions is guilty of
a misdemeanor of the first degree, punishable as provided in
s. 775.082, s. 775.083, or s. 775.084.
Section 25. Subsection (1) of section 212.14, Florida Statutes, 1986

Supplement, as amended by chapter 87-6, Laws of Florida, is amended
to read:

October 7, 1987

purchases or tangible personal property are returnable to a dealer.
Section 27. (1) Subsection (3) of section 212.18, Florida Statutes,
1986 Supplement, as amended by section 21 of chapter 87-6 and
chapter 87-402, Laws of Florida, is amended to read:

OF REPRESENTATIVES 85

212.14 Departmental powers; hearings, subpoena; distress warrants;
time for assessments.-
(1) Any person required to pay a tax imposed under this chapter, or
to make a return, either or both, and who renders a return or makes a
payment of a tax with intent to deceive or defraud the state, and to
prevent the state from collecting the amount of taxes imposed by this
chapter, or otherwise fails to comply with the provisions of this chapter
for the taxable period for which any return is made, or any tax is paid,
or any report is made to the department, may be required by the
department to show cause at a time and place to be set by the
department, after 10 days' notice in writing requiring such books,
records, or papers as the department may require relating to the
business of such person for such tax period, and the department may
require such person, or persons, or their employee or employees to give
testimony under oath and answer interrogatories by the department,
or an assistant, respecting the sale, use, consumption, distribution, or
storage rental or license for use of real or personal property or services
within the state, or admissions collected therein, or the failure to make
a true report thereof, as provided by this chapter, or failure to pay the
true amount of the tax required to be paid under this chapter. At said
hearing, in the event such person fails to produce such books, records,
or papers, or to appear and answer questions within the scope of
investigation relating to matters concerning taxes to be imposed under
this chapter, or prevents or impedes his or her agents or employees
from giving testimony, then the department is authorized under this
chapter to estimate any unpaid deficiencies in taxes to be assessed
against such person upon such information as may be available to it
and to issue a distress warrant for the collection of such taxes, interest,
or penalties estimated by him to be due and payable, and such
assessment shall be deemed prima facie correct. In such cases said
warrant shall be issued to any sheriff in the state where such person
owns or possesses any property and such property as may be required
to satisfy any such taxes, interest, or penalties shall be by such sheriff
seized and sold under said distress warrant in the same manner as
property is permitted to be seized and sold under distress warrants
issued to secure the payments of delinquent taxes as hereinafter
provided, and the department shall also have the right to writ of
garnishment to subject any indebtedness due to the delinquent dealer
by a third person in any goods, money, chattels, or effects of the
delinquent dealer in the hands, possession, or control of the third
person in the manner provided by law. Respecting the place for the
holding of a hearing by the department or its agents as provided in this
section, the person whose tax return or report being investigated may
by written request to the department require the hearing be set at a
place within the judicial circuit of Florida wherein the person's
business is located or within the judicial circuit of Florida wherein
such person's books and records are kept.
Section 26. Subsections (3) and (7) of section 212.17, Florida
Statutes, 1986 Supplement, as amended by chapter 87-6, Laws of
Florida, are amended to read:
212.17 Credits for returned goods, returned payments fe or iee
rentals, or admissions; additional powers of department.-
(3) A dealer who has paid the tax imposed by this chapter on
tangible personal property or services may take a credit or obtain a
refund for any tax paid by him on the unpaid balance due on worthless
accounts within 12 months following the month in which the bad debt
has been charged off for federal income tax purposes. If any accounts so
charged off for which a credit or refund has been obtained are
thereafter in whole or in part paid to the dealer, the amount so paid
shall be included in the first return filed after such collection and the
tax paid accordingly.
(7) The department, where admissions, license fees, or rental
payments or payments for services are made and thereafter returned to
the payers after the taxes thereon have been paid, shall return or
credit the taxpayer for taxes so paid on the moneys returned in the
same manner as is provided for returns or credits of taxes where

86 JOURNAL OF THE HOUSE

212.18 Administration of law; rules and regulations.-
(3) Every person desiring to engage in or conduct business in this
state as a dealer, as defined in this chapter, or to lease, rent, or let or
grant licenses in living quarters or sleeping or housekeeping accom-
modations in hotels, apartment houses, roominghouses, tourist or
trailer camps, or real property, as defined in this chapter, and every
person who sells or receives anything of value by way of admissions,
shall file with the department an application for a certificate of
registration for each place of business, showing the names of the
persons who have interests in such business and their residences, the
address of the business, and such other data as the department may
reasonably require. The application shall be made to the department
before the person, firm, copartnership, or corporation may engage in
such business; and it shall be accompanied by a registration fee of $5.
However, no registration fee is required to accompany an application
to engage in or conduct business to make mail order sales. The
department, upon receipt of such application, will grant to the
applicant a separate certificate of registration for each place of
business, which certificate may be canceled by the department or its
designated assistants for any failure by the certificateholder to comply
with any of the provisions of this chapter. The certificate shall not be
assignable and shall be valid only for the person, firm, copartnership,
or corporation to which issued; and such certificate shall be placed in a
conspicuous place in the business or businesses for which it is issued
and shall be so displayed at all times. No person shall engage in
business as a dealer or in leasing, renting, or letting of or granting
licenses in living quarters or sleeping or housekeeping accommoda-
tions in hotels, apartment houses, roominghouses, tourist or trailer
camps, or real property as hereinbefore defined, nor shall any person
sell or receive anything of value by way of admissions, without first
having obtained such a certificate or after such certificate has been
canceled; and no person shall receive any license from any authority
within the state to engage in any such business without first having
obtained such a certificate or after such certificate has been canceled.
The engaging in the business of selling or leasing tangible personal
property er seFrices or as a dealer, as defined in this chapter, or the
engaging in leasing, renting, or letting of or granting licenses in living
quarters or sleeping or housekeeping accommodations in hotels,
apartment houses, roominghouses, tourist or trailer camps, or real
property as hereinbefore defined, or the engaging in the business of
selling or receiving anything of value by way of admissions, without
such certificate first being obtained or after such certificate has been
canceled by the department is prohibited. The failure or refusal of any
person, firm, copartnership, or corporation to so qualify when required
hereunder is a misdemeanor of the second degree, punishable as
provided in s. 775.082, s. 775.083, or s. 775.084, or subject to injunctive
proceedings as provided by law.
(2) Effective July 1, 1988, subsection (3) of section 212.18, Florida
Statutes, 1986 Supplement, as further amended by section 92 of
chapter 87-6 and section 60 of chapter 87-101, Laws of Florida, is
amended to read:
212.18 Administration of law; rules and regulations.-
(3) Every person desiring to engage in or conduct business in this
state as a dealer, as defined in this chapter, or to lease, rent, or let or
grant licenses in living quarters or sleeping or housekeeping accom-
modations in hotels, apartment houses, roominghouses, tourist or
trailer camps, or real property, as defined in this chapter, and every
person who sells or receives anything of value by way of admissions,
shall file with the department an application for a certificate of
registration for each place of business, showing the names of the
persons who have interests in such business and their residences, the
address of the business, and such other data as the department may
reasonably require. The application shall be made-to the department
before the person, firm, copartnership, or corporation may engage in
such business; and it shall be accompanied by a registration fee of $5.
However, no registration fee is required to accompany an application

to engage in or conduct business or make mail order sales. The
department, upon receipt of such application, will grant to the
applicant a separate certificate of registration for each place of
business, which certificate may be canceled by the department or its
designated assistants for any failure by the certificateholder to comply

E

SOF REPRESENTATIVES October 7, 1987

with any of the provisions of this chapter. The certificate shall not be
assignable and shall be valid only for the person, firm, copartnership,
or corporation to which issued; and such certificate shall be placed in a
conspicuous place in the business or businesses for which it is issued
and shall be so displayed at all times. No person shall engage in
business as a dealer or in leasing, renting, or letting of or granting
licenses in living quarters or sleeping or housekeeping accommoda-
tions in hotels, apartment houses, roominghouses, tourist or trailer
camps, or real property as hereinbefore defined, nor shall any person
sell or receive anything of value by way of admissions, without first
having obtained such a certificate or after such certificate has been
canceled; and no person shall receive any license from any authority
within the state to engage in any such business without first having
obtained such a certificate or after such certificate has been canceled.
The engaging in the business of selling or leasing tangible personal
property e services or as a dealer, as defined in this chapter, or the
engaging in leasing, renting, or letting of or granting licenses in living
quarters or sleeping or housekeeping accommodations in hotels,
apartment houses, roominghouses, tourist or trailer camps, or real
property as hereinbefore defined, or the engaging in the business of
selling or receiving anything of value by way of admissions, without
such certificate first being obtained or after such certificate has been
canceled by the department is prohibited. The failure or refusal of any
person, firm, copartnership, or corporation to so qualify when required
hereunder is a misdemeanor of the first degree, punishable as provided
in s. 775.082, s. 775.083, or s. 775.084, or subject to injunctive
proceedings as provided by law.
Section 28. Subsection (3) of section 212.21, Florida Statutes, as
amended by chapter 87-6, Laws of Florida, is amended to read:
212.21 Declaration of legislative intent.-
(3) It is further declared to be the specific legislative intent to
exempt from the tax or taxes or from the operation or the imposition
thereof only such sales, admissions, uses, storage, consumption or
rentals in relation to or in respect of the things set forth by this
chapter as exempted from the tax to the extent that such exemptions
are in accordance with the provisions of the constitutions of the state
and of the United States. It is further declared to be the specific
legislative intent to tax each and every taxable privilege made subject
to the tax or taxes, and eaeh an4 every taxable service made subject to
the taxo taxes, except such sales, admissions, uses, storage,
consumption or rentals as are specifically exempted therefrom by this
chapter to the extent that such exemptions are in accordance with the
provisions of the constitutions of the state and of the United States.
Section 29. Section 212.61, Florida Statutes, as amended by chapter
87-6, Laws of Florida, is amended to read:
212.61 Definitions.-As used in this part, the term:
(1) "Dealer" means any person who holds a valid license as a dealer
of special fuel, issued by the Department pursuant to s. 206.89, and
who:
(a) Imports and sells at wholesale, retail, or otherwise within this
state any special fuel;
(b) Imports, or causes to be imported, and withdraws for use within
this state by himself or others any special fuel from the tank car,
truck, or other original container or package in which it was imported
into this state;
(c) Exports special fuel from this state to another state or foreign
country;
(d) Manufactures, refines, produces, or compounds any special fuel
within this state and sells such fuel at wholesale, retail, or otherwise
within this state;
(e) Imports into this state from any other state or foreign country, or
receives by any means into this state and keeps in storage in this state
for a period of 24 hours or more after the fuel loses interstate character

as a shipment in interstate commerce, any special fuel which is
intended to be used in this state;
(f) Is primarily liable under the special fuel tax laws of this state for
the payment of special fuel taxes;

JOURNAL OF THE HOUSE OF REPRESENTATIVES

(g) Purchases or receives in this state special fuel in bulk quantities
for resale to service stations, to a user or another dealer, or to the
ultimate consumer for nontaxable consumption upon which the tax has
not been paid; or
(h) Has both a taxable use and nontaxable consumption of the same
special fuel in this state. However, this paragraph does not require
that a person be a dealer when his only purchases of special fuel are
delivered into reservoirs attached to motor vehicles to fuel internal
combustion engines attached to such motor vehicles.
(2) "Refiner," "importer," or "wholesaler" means any person who
holds a valid license as a refiner, importer, or wholesaler, as defined in
s. 206.01, of motor fuel, issued by the department pursuant to
ss. 206.02 and 206.03.
(3) "Retail dealer" means any person who is licensed pursuant to
chapter 206 to sell motor fuel or special fuel at retail to the general
public at posted retail prices.
The definitions contained in s. 212.02(2), (5), (8), (11), (13), (14), (15),
(16), (17), (18), (19), (21), and (22) 212.02(3-) (474 24,5 (4- 174 (4184
(094 (20 ) 2 ); 23 (25) (27 and (28) apply to the same terms as used
in this part.
Section 30. Subsection (1) of section 32 and sections 38, 47, and 109
of chapter 87-6, Laws of Florida, as amended by chapter 87-101, Laws
of Florida, are hereby repealed.
Section 31. Section 212.235, Florida Statutes, as created by chapter
87-6, Laws of Florida, and amended by chapter 87-101, Laws of
Florida, is amended to read:
212.235 State Infrastructure Trust Fund; deposits.-
(1) Notwithstanding the provisions of ss. 212.20(1) and 218.61, in
fiscal year 1987-1988 an amount equal to 2 percent; aft in eaeh fiscal
year thereafter -a amount equal to 5 percent, of the proceeds remitted
pursuant to this part by a dealer, or the sums sufficient to provide the
maximum receipts specified herein, shall be transferred into the State
Infrastructure Trust Fund, which is created in the State Treasury.
"Proceeds" means all funds collected and received by the Department
of Revenue, including any interest and penalties. However, any
receipts of the trust fund, including these received pursuant to
ses 201-15(5" ) aid 206.875(34 and interest earned, in excess of $140 $200
million in fiscal year 1987-1988- a4d $500 million thereafter, shall
revert to the General Revenue Fund.
(2) Subject to an appropriation each year by the Legislature, moneys
in the fund shall only be used for the purposes of:
(a) Acquiring the right-of-way for and constructing state highways
and bridges;
(b) Constructing public education capital facilities;
(c) Financing state projects for beach restoration or renourishment or
lake, river, or other water body restoration, including the restoration
of bays and estuaries;
(d) Constructing state correctional facilities;
(e) Constructing other infrastructure projects; or
(f) Issuing revenue bonds to finance state capital outlay projects
authorized by this section. Such bonds shall be payable solely from
legislative appropriations from the State Infrastructure Trust Fund
and shall not be a debt of the state, and the state shall not be liable
thereon. Neither the taxing power, the credit, nor the revenues of the
state shall be pledged to pay any obligation issued pursuant to this
subsection.
Section 32. Paragraph (d) of subsection (2) of section 215.32, Florida
Statutes, as amended by chapter 87-247, Laws of Florida, is amended
to read:
215.32 State funds; segregation.-
(2) The source and use of each of these funds shall be as follows:
(d) The State Infrastructure Fund shall consist of all moneys

received from proceeds earmarked for this fund pursuant to
s. s 20. 15 206.87-5 fi a1 212.235. Suseh moneys shall only be

expended pursuant to legislative appropriations for infrastreture
facilities listed in s- 212.235(2).
Section 33. Subsection (1) of section 201.02, Florida Statutes, 1986
Supplement, as amended by chapter 87-6, Laws of Florida, is amended
to read:
201.02 Tax on deeds and other instruments relating to real property
or interests in real property.-
(1) On deeds, instruments, or writings whereby any lands, tene-
ments, or other real property, or any interest therein, shall be granted,
assigned, transferred, or otherwise conveyed to, or vested in, the
purchaser or any other person by his direction, on each $100 of the
consideration therefore the tax shall be 50 55 cents. When the full
amount of the consideration for the execution, assignment, transfer, or
conveyance is not shown in the face of such deed, instrument,
document, or writing, the tax shall be at the rate of 50 55 cents for
each $100 or fractional part thereof of the consideration therefore.
Section 34. Section 201.15, Florida Statutes, as amended by chapters
87-6 and 87-96, Laws of Florida, is amended to read:
201.15 Distribution of taxes collected.-All taxes collected under the
provisions of this chapter shall be distributed as follows:
(1) Sixty-four and eight-tenths Sixty and eight tenths percent of the
total taxes collected under the provisions of this chapter shall be paid
into the State Treasury to the credit of the General Revenue Fund of
the state, to be used and expended for the purposes for which the
General Revenue Fund was created and exists by law.
(2) Twelve and five-tenths Eleven and eight tenths percent of the
total taxes collected under the provisions of this chapter shall be paid
into the State Treasury to the credit of the Land Acquisition Trust
Fund. Sums deposited in such fund pursuant to this subsection may be
used for any purpose for which funds deposited in the Land Acquisition
Trust Fund may lawfully be used and may be used to pay the cost of
the collection and enforcement of the tax levied by this chapter.
(3) Three and one-tenth percent of the total taxes collected under the
provisions of this chapter shall be paid into the State Treasury to the
credit of the Land Acquisition Trust Fund. Moneys deposited in the
trust fund pursuant to this section shall be used for the following
purposes:
(a) Sixty percent of the moneys shall be used to acquire coastal lands
or to pay debt service on bonds issued to acquire coastal lands; and
(b) Forty percent of the moneys shall be used to develop and manage
lands acquired with moneys from the Land Acquisition Trust Fund.
(4) Nine and eight-tenths Nine and two tenths percent of the total
taxes collected under the provisions of this chapter shall be paid into
the State Treasury to the credit of the Water Management Lands Trust
Fund. Sums deposited in that fund may be used for any purpose
authorized in s. 373.59 and may be used to pay the cost of the
collection and enforcement of the tax levied by this chapter.
(5) Six percent of the total taxes eelleeted under the provisions of this
ehapte'- shall be pai into the State T hee Treasry e t eredit of the State
Infrastructure Trust Fund.
(5)() Nine and eight-tenths Nine and two tenths percent of the total
taxes collected under the provisions of this chapter shall be paid into
the State Treasury to the credit of the Conservation and Recreation
Lands Trust Fund to carry out the purposes set forth in s. 253.023.
Section 35. Paragraph (b) of subsection (1) of section 206.87, Florida
Statutes, as created by chapter 87-6, Laws of Florida, is hereby repealed.
Section 36. Subsection (3) of section 206.875, Florida Statutes, as
created by chapter 87-6, Laws of Florida, is hereby repealed.
Section 37. (1) Section 207.026, Florida Statutes, as amended by
chapter 87-6, Laws of Florida, is amended to read:
207.026 Allocation of tax.-All moneys derived from the taxes and
fees imposed by this chapter shall be paid into the State Treasury by
the department for deposit in the Gas Tax Collection Trust Fund, from

which the following transfers shall be made: After withholding $50,000
from the proceeds therefrom, to be used as a revolving cash balance,

October 7, 1987

87

88 JOURNAL OF THE HOUSE

the funds for the purpose of conducting the study as set forth in s. 4 of
chapter 80-415, Laws of Florida, and the amount of funds necessary for
the administration and enforcement of this tax, all other moneys shall
be transferred in the same manner and for the same purpose as
provided in ss. 206.41, 206.45, 206.60, 206.605, 206.875, and 212.69.
(2) It is the intent of the Legislature that the amendment of
s. 207.026, Florida Statutes, by this act shall not affect the amendment
of said section by section 13 of chapter 87-198, Laws of Florida, which
is to take effect March 1, 1988.
Section 38. Subsection (3) of section 57.071, Florida Statutes, as
created by chapter 87-6, Laws of Florida, is hereby repealed.
Section 39. Subparagraph 3, of paragraph (d) of subsection (3) of
section 57.111, Florida Statutes, as created by chapter 87-6, Laws of
Florida, is hereby repealed.
Section 40. Paragraph (b) of subsection (1) of section 120.57, Florida
Statutes, 1986 Supplement, as amended by chapters 87-6 and 87-385,
Laws of Florida, and as amended and reenacted by chapter 87-54, Laws
of Florida, is amended to read:
120.57 Decisions which affect substantial interests.-The provisions
of this section apply in all proceedings in which the substantial
interests of a party are determined by an agency, unless such
proceedings are exempt pursuant to subsection (5). Unless waived by
all parties, subsection (1) applies whenever the proceeding involves a
disputed issue of material fact. Unless otherwise agreed, subsection (2)
applies in all other cases.
(1) FORMAL PROCEEDINGS.-
(b) In any case to which this subsection is applicable, the following
procedures apply:
1. A request for a hearing shall be granted or denied within 15 days
of receipt.
2. All parties shall be afforded an opportunity for a hearing after
reasonable notice of not less than 14 days; however, the 14-day notice
requirement may be waived with the consent of all parties. In a
preliminary hearing for the revocation of parole, no less than 7 days'
notice shall be given. In a hearing involving a student disciplinary
suspension or expulsion conducted by an educational unit, the 14-day
notice requirement may be waived by the agency head or the hearing
officer without the consent of the parties. The notice shall include:
a. A statement of the time, place, and nature of the hearing.
b. A statement of the legal authority and jurisdiction under which
the hearing is to be held.
c. A reference to the particular sections of the statutes and rules
involved.
d. Except for any hearing before an unemployment compensation
appeals referee, a short and plain statement of the matters asserted by
the agency and by all parties of record at the time notice is given. If
the agency or any party is unable to state the matters in sufficient
detail at the time initial notice is given, the notice may be limited to a
statement of the issues involved, and thereafter, upon timely written
application, a more definite and detailed statement shall be furnished
not less than 3 days prior to the date set for the hearing.
3. Except for any proceeding conducted as prescribed in s. 120.54(4)
or s. 120.56, oe e 120.575(l)(b,, a petition or request for a hearing
under this section shall be filed with the agency. If the agency elects to
request a hearing officer from the division, it shall so notify the
division within 15 days of receipt of the petition or request. When the
Florida Land and Water Adjudicatory Commission receives a notice of
appeal pursuant to s. 380.07, the commission shall notify the division
within 60 days of receipt of the notice of appeal if the commission
elects to request the assignment of a hearing officer. On the request of
any agency, the division shall assign a hearing officer with due regard

to the expertise required for the particular matter. The referring
agency shall take no further action with respect to the formal
proceeding, except as a party litigant, as long as the division has
jurisdiction over the formal proceeding. Any party may request the
disqualification of the hearing officer by filing an affidavit with the

E

OF REPRESENTATIVES October 7, 1987

division prior to the taking of evidence at a hearing, stating the
grounds with particularity.
4. All parties shall have an opportunity to respond, to present
evidence and argument on all issues involved, to conduct cross-exami-
nation and submit rebuttal evidence, to submit proposed findings of
facts and orders, to file exceptions to any order or hearing officer's
recommended order, and to be represented by counsel. When appropri-
ate, the general public may be given an opportunity to present oral or
written communications. If the agency proposes to consider such
material, then all parties shall be given an opportunity to cross-exam-
ine or challenge or rebut it.
5. All pleadings, motions, or other papers filed in the proceeding
must be signed by a party, the party's attorney, or the party's qualified
representative. The signature of a party, a party's attorney, or a
party's qualified representative constitutes a certificate that he has
read the pleading, motion, or other paper and that, to the best of his
knowledge, information, and belief formed after reasonable inquiry, it
is not interposed for any improper purposes, such as to harass or to
cause unnecessary delay or for frivolous purpose or needless increase
in the cost of litigation. If a pleading, motion, or other paper is signed
in violation of these requirements, the hearing officer, upon motion or
his own initiative, shall impose upon the person who signed it, a
represented party, or both, an appropriate sanction, which may include
an order to pay the other party or parties the amount of reasonable
expenses incurred because of the filing of the pleading, motion, or
other paper, including a reasonable attorney's fee.
6. The record in a case governed by this subsection shall consist only
of:
a. All notices, pleadings, motions, and intermediate rulings;
b. Evidence received or considered;
c. A statement of matters officially recognized;
d. Questions and proffers of proof and objections and rulings thereon;
e. Proposed findings and exceptions;
f. Any decision, opinion, proposed or recommended order, or report
by the officer presiding at the hearing;
g. All staff memoranda or data submitted to the hearing officer
during the hearing or prior to its disposition, after notice of the
submission to all parties, except communications by advisory staff as
permitted under s. 120.66(1), if such communications are public
records;
h. All matters placed on the record after an ex parte communication
pursuant to s. 120.66(2); and
i. The official transcript.
7. The agency shall accurately and completely preserve all testimony
in the proceeding, and, on the request of any party, it shall make a full
or partial transcript available at no more than actual cost. In any
proceeding before a hearing officer initiated by a consumptive use
permit applicant pursuant to subparagraph 14., the applicant shall
bear the cost of accurately and completely preserving all testimony and
providing full or partial transcripts to the water management district.
At the request of any other party, full or partial transcripts shall be
provided at no more than cost.
8. Findings of fact shall be based exclusively on the evidence of
record and on matters officially recognized.
9. Except as provided in subparagraph 12., the hearing officer shall
complete and submit to the agency and all parties a recommended
order consisting of his findings of fact, conclusions of law, interpreta-
tion of administrative rules, and recommended penalty, if applicable,
and any other information required by law or agency rule to be
contained in the final order. The agency shall allow each party at least

10 days in which to submit written exceptions to the recommended
order.
10. The agency may adopt the recommended order as the final order
of the agency. The agency in its final order may reject or modify the
conclusions of law and interpretation of administrative rules in the

JOURNAL OF THE HOUS1

recommended order, but may not reject or modify the findings of fact
unless the agency first determines from a review of the complete
record, and states with particularity in the order, that the findings of
fact were not based upon competent substantial evidence or that the
proceedings on which the findings were based did not comply with
essential requirements of law. The agency may accept the recom-
mended penalty in a recommended order, but may not reduce or
increase it without a review of the complete record and without stating
with particularity its reasons therefore in the order, by citing to the
record in justifying the action. When there is an appeal, the court in its
discretion may award reasonable attorney's fees and costs to the
prevailing party if the court finds that the appeal was frivolous,
meritless, or an abuse of the appellate process or that the agency
action which precipitated the appeal was a gross abuse of the agency's
discretion.
11. If the hearing officer assigned to a hearing becomes unavailable,
the division shall assign another hearing officer who shall use any
existing record and receive any additional evidence or argument, if
any, which the new hearing officer finds necessary.
12. A hearing officer who is a member of an agency head may
participate in the formulation of the final order of the agency, provided
he has completed all his duties as hearing officer.
13. In any application for a license or merger pursuant to title
XXXVIII which is referred by the agency to the division for hearing
pursuant to this section, the hearing officer shall complete and submit
to the agency and to all parties a written report consisting of findings
of fact and rulings on evidentiary matters. The agency shall allow each
party at least 10 days in which to submit written exceptions to the
report.
14. In any application for a consumptive use permit pursuant to part
II of chapter 373, the water management district on its own motion
may, or, at the request of the applicant for the permit, shall, refer the
matter to the division for the appointment of a hearing officer to
conduct a hearing under this section.
Section 41. Paragraph (b) of subsection (1) of section 120.575, Florida
Statutes, as created by chapter 87-6, Laws of Florida, and amended by
chapter 87-101, Laws of Florida, is hereby repealed.
Section 42. Subsection (5) of section 120.65, Florida Statutes, as
created by chapter 87-6, Laws of Florida, and amended by chapter
87-101, Laws of Florida, is hereby repealed.
Section 43. Section 213.30, Florida Statutes, as created by chapter
87-6, Laws of Florida, is hereby repealed.
Section 44. Any person who, before the effective date of this act, was
required by s. 212.13, Florida Statutes, as amended by chapters 87-6
and 87-101, Laws of Florida, to keep records relating to the sale or use
of services, shall continue to keep such records for a period of 3 years,
and such records shall be available for inspection in the same manner
as records kept pursuant to s. 212.13, Florida Statutes. The failure to
keep such records or to allow their inspection as required by this section
is subject to the same penalties provided in s. 21213, Florida Statutes.
Section 45. The repeal by this act of any statute or part of a statute
does not affect the prosecution or continued .prosecution of any cause of
action that accrued prior to the effective date of this act.
Section 46. Section 33 of chapter 87-6, Laws of Florida, as amended
by chapter 87-101, Laws of Florida, is amended to read:
Section 33. The Legislature hereby finds that the failure to promptly
implement the provisions of this act would present an immediate
threat to the welfare of the state because revenues needed for
operation of the state would not be collected. Therefore, the executive
director of the Department of Revenue is hereby authorized to adopt
emergency rules pursuant to s. 120.54(9), Florida Statutes, for pur-
poses of implementing this act. Notwithstanding any other provision of
law, such emergency rules shall remain effective through December 31,
"1987 for 6 months from the date of adoption. Other rules of the
Department of Revenue .related to and in furtherance of the orderly

implementation of chapter 87-6, Laws of Florida, and this act shall not
.be stibject to a s. 120.54(4), Florida Statutes, rule challenge or a
s. 120.54(17), Florida Statutes, drawout proceeding, but, once adopted,

October 7, 1987

dations shall include a financial schedule which shall provide:
(1) His estimate of the recommended recurring revenues available in
the Working Capital Fund, the State Infrastructure Fund, and the
General Revenue Fund.

E OF REPRESENTATIVES 89

shall be subject to a s. 120.56, Florida Statutes, invalidity challenge.
Such rules shall be adopted by the Governor and Cabinet and shall
become effective upon filing with the Department of State, notwith-
standing the provisions of s. 120.54(13), Florida Statutes.
Section 47. All services subject to tax under the provisions of chapter
87-6, Laws of Florida, as amended, which were sold or used in the state
prior to the effective date of this act remain taxable under the provisions
of said chapter, notwithstanding that payment for those services was
received by the dealer after the effective date of this act. This act shall
not be construed in any way to prohibit subsequent collection or
enforcement of taxes due under the provisions of said chapter prior to
the effective date of this act. To this end, the audit, collection, and
enforcement powers of the Department of Revenue shall be construed to
ensure that all taxes imposed by said chapter prior to the effective date of
this act are received by the state.
Section 48. (1) The department shall promulgate rules to ensure the
orderly implementation of this act.
(2) This section shall take effect upon this act becoming a law.
Section 49. Subsection (4) of section 125.0167, Florida Statutes, as
created by chapter 83-220, Laws of Florida, is hereby repealed.
Section 50. Section 3 of chapter 83-220, Laws of Florida, is amended
to read:
Section 3. This act shall take effect October 1, 1983, and the
provisions thereof shall expire and be void and inoperative on October
1, 2010 1993.
Section 51. Paragraph (mm) is added to subsection (1) of section
216.011, Florida Statutes, as amended by section 3 of chapter 87-137,
Laws of Florida, to read:
216.011 Definitions.-
(1) For the purpose of fiscal affairs of the state, appropriations acts,
legislative budgets, and approved budgets, each of the following terms
has the meaning indicated:
(mm) "Proviso" means language that qualifies or restricts a specific
appropriation and which can be logically and directly related to the
specific appropriation.
Section 52. Subsection (7) of section 216.031, Florida Statutes, as
amended by section 5 of chapter 87-137, Laws of Florida, is hereby
repealed.
Section 53. Section 216.046, Florida Statutes, is amended to read:
216.046 Governor's supplemental recommendations.-The Governor
may make supplemental revenue and appropriation recommendations
to the Legislature at least 45 days prior to the annual session in any
-3even-numbered year. The supplemental recommendations shall
include the information required in ss. 216.162-216.168 and shall use
as a base the most recent legislative appropriations aet or approved
operating budget.
Section 54. Section 216.081, Florida Statutes, is amended to read:
;216.081 Data on legislative expenses.-
(1) On or before November 1 in each even-numbered year, in
sufficient time to be included in the Governor's recommended budget
report to the Legislature, estimates of the financial needs of the
legislative branch during the ensuing biennium shall be furnished to
the Governor pursuant to chapter 11.
(2) All of the data relative to the legislative branch shall be for
information and guidance in estimating the total financial needs of the
state for the ensuing biennium; but none of these estimates shall be
subject to revision or review by the Governor, and they must be
included in his recommended budget report to the Legislature.
Section 55. Section 216.167, Florida Statutes, is amended to read:
216.167 Governor's recommendations.-The Governor's recommen-

90

JOURNAL OF THE HOUSE

(2) His estimate of the recommended nonrecurring revenues avail-
able in the Working Capital Fund, the State Infrastructure Fund, and
the General Revenue Fund.
(3) His recommended recurring and nonrecurring appropriations
from the Working Capital Fund, the State Infrastructure Fund, and the
General Revenue FundT an4 the Federal Revenue Sharing Fund.
(4) His estimates of any interfund loans or temporary obligations of
the Working Capital Fund or trust funds, which loans or obligations
are needed to implement his recommended budget.
(5) His estimates of the debt service and reserve requirements for any
recommended new bond issues or reissues and his recommended debt
service appropriations for all outstanding fixed capital outlay bond
issues.
Section 56. Subsection (1) of section 216.181, Florida Statutes, as
amended by section 58 of chapter 87-224, Laws of Florida, is amended
to read:
216.181 Approved budgets for operations and fixed capital outlay.-
(1) On or before the fifth day before the end of the period allowed by
law for veto consideration in July 4- of any year in which an
appropriation is made, the chairmen of the legislative appropriations
committees shall jointly transmit a statement of intent, including
performance and workload measures as appropriate and the official list
of General Revenue Fund appropriations determined in consultation
with the Executive Office of the Governor to be nonrecurring, to the
Executive Office of the Governor, the Comptroller, the Auditor
General, and each state agency. The statement of intent may not
allocate or appropriate any funds, or amend or correct any provision, in
the General Appropriations Act, but may provide additional direction
and explanation to the Executive Office of the Governor, the Adminis-
tration Commission, and each affected state agency relative to the
purpose, objectives, spending philosophy, and restrictions associated
with any specific appropriation category. The statement of intent shall
compare the request of the agency or the recommendation of the
Governor to the funds appropriated for the purpose of establishing
intent in the development of the approved operating budget. A request
for additional explanation and direction regarding the legislative
intent of the general appropriations act during the fiscal year may be
made only by and through the Executive Office of the Governor as is
deemed necessary. However, the Comptroller may also request further
clarification of legislative intent pursuant to his responsibilities
related to his preaudit function of expenditures.
Section 57. Subsection (5) of section 216.292, Florida Statutes, is
amended to read:
216.292 Appropriations nontransferable; exceptions.-
(5) The Executive Office of the Governor may approve any transfer
from the Working Capital Fund to the General Revenue Fund provided
such transfer was identified or contemplated by the Legislature in the
original approved operating budget.
Section 58. Paragraph (c) of subsection (1) of section 216.301, Florida
Statutes, is amended to read:
216.301 Appropriations; undisbursed balances.-
(1)
(c) Each department shall maintain the integrity of the general
revenue fund. Appropriations from the general revenue fund for any
state agency contained in the original approved operating budget may,
with the approval of the Executive Office of the Governor, be
transferred to the proper trust fund for disbursement. However, all
transferred general revenue funds which are unexpended on June 30
are subject to the general revenue reversion provision of this chapter.
Section 59. Subsections (2) and (3) of section 235.41, Florida
Statutes, as amended by section 47 of chapter 87-329, Laws of Florida,
are amended to read:
235.41 Legislative capital outlay budget request.--

(2) The commissioner shall submit to the Governor and to the
Legislature an integrated, comprehensive budget request for educa-

OF REPRESENTATIVES October 7, 1987

tional facilities construction and fixed capital outlay needs for all
boards, including the Board of Regents, pursuant to the provisions of
s. 235.435 and applicable provisions of chapter 216. Each board,
including the Board of Regents, shall submit to the commissioner a
3-year plan and data required in the development of the annual capital
outlay budget. No further disbursements shall be made from the Public
Education Capital Outlay and Debt Service Trust Fund to a board that
fails to timely submit the required data until such board submits the
data.
(3) The commissioner shall submit an integrated, comprehensive
budget request to the Executive Office of the Governor and to the
Legislature no later than 60 45 days prior to the legislative session
each fiscal year. Notwithstanding the provisions of s. 216.043, the
integrated, comprehensive budget request shall include:
(a) For the Public Education Capital Outlay and Debt Service Trust
Fund and all sinking and investment accounts which are in receipt of
any portion of the revenue sources listed in s. 235.42(2)(a):

1. A schedule for each fund showing the actual beginning cash
balance for each of the 2 prior fiscal years and showing for the current
fiscal year the estimated beginning cash balance and a listing of all
disbursements and receipts.
2. For the budget fiscal year for each fund, the projected beginning
cash balance, a monthly projection of all receipts, and a monthly
projection of all disbursements.
3. For the budget fiscal year, necessary forecasting data to enable
the commissioner to prepare and submit a monthly gross receipts tax
forecast, a monthly bond proceeds estimate, the interest rate assump-
tion used in the bond proceeds estimate, a monthly interest earnings
forecast, the interest rate assumption used in the calculation of
interest to be received on the idle balances invested, and any other
reports as deemed necessary by the Legislature.
(b)(d Recommendations for the priority of expenditure of funds in
the state system of public education, with reasons for the recommended
priorities, and other recommendations which relate to the effectiveness
of the educational facilities construction program.

All items in s. 235.435 shall be part of the legislative budget request
submitted by the commissioner.
Section 60. If Part I of this act takes effect as specified herein, the
amendments to or repeal of statute sections or portions thereof contained
in Part I shall prevail over any conflicting amendments contained in
Part II of this act.
Section 61. Part I of this act shall take effect April 15, 1988, except
as otherwise provided herein.
Section 62. (1) Part I of this act is repealed effective April 14, 1988, if
an affirmative vote is cast by a majority of the electors of the state voting
in a referendum to be held on March 8, 1988, concurrent with the
presidential primary election, at which the following question shall be
placed on the ballot:
SALES TAX QUESTION
Do you favor the retention of the sales tax on services and the increase
in the documentary stamp tax as adopted in 1987 and presently in effect,
instead of increasing the general sales tax from 5 percent to 5.5 percent
on goods, admissions, and rentals?
(2) It is the intent of the Legislature that an affirmative vote on the
question by a majority of the electors voting in such referendum shall
repeal the provisions of Part I of this act as provided in subsection (1)
and the sections contained in Part I shall not be construed as having
amended or repealed any provisions of Florida Statutes. If a court of
competent jurisdiction rules that such an affirmative vote may not act to
repeal the provisions of Part I of this act, the results of the referendum
shall be regarded as a straw poll, and the provisions of Part I of this act
shall continue to be in force as provided therein.
(3) This section shall take effect upon becoming a law.
Section 63. (1) On March 8, 1988, concurrent with the presidential
preference primary election, there shall be held in all of the counties of

JOURNAL OF THE HOUSE OF REPRESENTATIVES

the state a referendum to elicit the views of the public on a matter of
vital interest to the State of Florida.
(2) The following question shall be placed upon the ballot on March 8:
SALES TAX QUESTION
Do you favor the retention of the sales tax on services and the increase
in the documentary stamp tax as adopted in 1987 and presently in effect,
instead of increasing the general sales tax from 5 percent to 5.5 percent
on goods, admissions, and rentals?
(2) It is the intent of the Legislature that if the provisions of section 62
of this act (the section immediately preceding this one) are held to be
invalid, the invalidity shall not affect the provisions of this section, and
to that end the provisions of this section are declared to be severable.
(3) This section shall take effect upon becoming a law.

PART II
Section 64. Effective January 1, 1988, paragraph (a) of subsection (1)
and subsection (2) of section 212.059, Florida Statutes, as created by
chapter 87-6, Laws of Florida, and subsection (3) of said section, as
amended by chapter 87-101, Laws of Florida, are amended, and
subsection (6) of said section, as created by chapter 87-101, Laws of
Florida, is hereby repealed, and new subsections (6) and (7) are added
to said section, to read:
212.059 Sales and use tax on services.-It is hereby declared to be
the legislative intent to levy an excise tax on the sale of services in this
state as hereinafter provided. It is further declared to be the legislative
intent to levy a complementary excise tax on the use of services in this
state as hereinafter provided.
(1)(a) A tax is hereby imposed on the sale at retail, f any service in
this state, of services as defined in s. 212.02, at the rate of 5 percent of
the sales price of the service. The tax shall be computed on each
taxable sale of a service for the purpose of remitting the amount of tax
due the state, and shall include each and every retail sale of the a
service.
(2) A tax is hereby imposed on the use, of any service in this state, of
services as defined in s. 212.02, when the sale of the service is at retail
outside this state, at the rate of 5 percent of the cost price of the
service. The use of the a service is in this state for purposes of this part
only if and to the extent that it is presumed used in this state pursuant
to s. 212.0591(9) if the benefit of the service is enjoyed in this state.
Fopurpos of determining where the benefit of the services is
enjoyed-, s 212.0591(4J shall apply.
(3)(a) Except as provided in paragraph (a), the sales and use tax on
services imposed by this section shall be collected by the dealer as
defined in this part and remitted by him to the state at the time and in
the manner as provided in this part.
(b)1. If the sale of a service is outside this state, any applicable use
tax shall be remitted by the purchaser or user of the service, if the
purchaser or user of the service has nexus for sales and use tax
purposes with this state. However, this paragraph shall not apply to
interstate or international transportation services. Neither does this
paragraph apply if the seller has tax nexus in this state and the service
sold
2. Notwithstanding other provisions to the contrary, a dealer shall
collect and remit use tax on the sale of a service outside this state if the
service either directly relates to real property in this state, directly
relates to tangible personal property in this state other than vehicles
or vessels in interstate or foreign commerce, or is represented by
tangible evidence, other than a bill or invoice, personal property
forwarded to a person in this state. However, the seller is not required
to collect the use tax if the service is sold to a person who presents an
exempt purchase permit or an exempt purchase affidavit.
(6) When a member of a business group, which member has no sales
and use tax nexus with this state, purchases a service to be used in this
state by a member of the group having sales and use tax nexus with this
state, the member or members having tax nexus with this state shall be

liable for use tax on the sales price of the service. For purposes of this
subsection, "sales price" means the sales price paid or incurred by the
business having no tax nexus with this state which purchased the

service. In the event that the member does not provide the department
with adequate proof of the sales price of services used in Florida, the
department shall reasonably estimate the sales price and this estimate
will be presumed valid for purposes of this part. Those members of a
business group having tax nexus in this state shall file returns under
this part on a combined basis.
(7) Notwithstanding the foregoing provisions, any sale of computer or
data processing services shall be presumed to have occurred in the state
in which the seller delivers those services to the purchaser. If the seller of
those services is delivering them to multiple locations, the purchaser
shall designate a single location as the location at which all such
services are delivered for purposes of this subsection. However, if one or
more of the locations are in this state, that location shall be designated
for purposes of this provision. The seller shall be entitled to rely upon
the designation provided by the purchaser. This provision shall not
relieve the purchaser or user of any liability for sales or use tax imposed
in this part.
Section 65. Effective January 1, 1988, subsection (9) of section
212.0591, Florida Statutes, as created by chapter 87-6, Laws of Florida,
and amended by chapter 87-101, Laws of Florida, is amended to read:
212.0591 Rules of construction.-For purposes of the sales and use
tax on services, the following rules of construction shall apply:
(9) For purposes of determining where the benefit of the a service is
used enjoyed, the following provisions shall be applicable:
(a) If the purchaser or user is an individual not acting as a business,
and:
1. If the service directly relates to real property, the benefit of the
service shall be presumed to be used enjoyed where the real property is
located; or
2. If subparagraph 1. is not applicable, the benefit of the a service
shall be presumed to be used enjoyed where the purchaser receives
tangible evidence, other than a bill or invoice, personal property
representing the service; or
3. If subparagraphs 1. and or 2. are not applicable, the benefit of the
service shall be presumed to be used enjoyed where the greater
proportion of the service is performed, based on costs of performance; or
4. Notwithstanding subparagraphs 1., 2., and 3., if the purchaser can
demonstrate to the satisfaction of the department that the benefit of
the service was used enjoyed outside of this state, the service shall be
deemed used or consumed outside of this state.
(b) If the purchaser or user is a multistate business, or a member of a
business group, one or more members of which is multistate, or one or
more members of which is located outside this state, the multistate
business, or in the case of a business group, the business group can elect
to have the provisions of this paragraph or paragraph (c) apply. The
department shall adopt rules governing the procedure for making an
annual election. and: This paragraph (b) shall apply to all other
businesses.
1. If the service directly relates to real property, the benefit of the
service shall be presumed to be used enjoyed where the real property is
located; or
2. If the service directly relates to tangible personal property, the
benefit of the service shall be presumed to be used enjoyed where the
property has acquired a business situs if the property has acquired
such situs; or
3. If the service directly involves sales to a service purchaser's or
user's local market, the benefit of the service shall be presumed to be
used enjoyed where the purchaser's local market exists; or
4. If subparagraphs 1., 2., and 3. are not applicable, and the
purchaser of the service is doing business in this state and outside of
this state, the service shall be presumed to be used enjoyed in this
state to the extent that the purchaser is doing business in this state.
For purposes of determining the extent of the purchaser's business in
this state, the apportionment formulas set forth in part IV of chapter

214, as modified by s. 220.15(4), shall be utilized. In the case of a
business an affiliated group, the business affiliated group, as defined in

October 7, 1987

91

JOURNAL OF THE HOUSE OF REPRESENTATIVES

October 7, 1987

s. 212.02, shall be considered the purchaser for purposes of this enjoyed in this state to the extent that the sales price or cost price of
subsection; or such services is apportioned to this state pursuant to s. 212.059(5).

5. If the provisions of subparagraphs 1., 2., 3., and 4. are not
applicable, the benefit of the service shall be presumed to be used
enjoyed where the purchaser is exclusively doing business; or
6. Notwithstanding subparagraphs 1., 2., 3., 4. and 5., if the
purchaser can demonstrate to the satisfaction of the department that
the benefit of the service was used enjoyed outside of this state, the
service shall be deemed used or consumed outside of this state.
(c)1. If the service directly relates to real property located in a single
state, including but not limited to the financing, purchase, sale, leasing,
servicing, improvement, construction, alteration, repair, or maintenance
of real property, the service shall be presumed to be used where the real
property is located; or
2. If the service directly relates to tangible personal property which
has an actual situs in a single state, including the financing, purchase,
sale, leasing, servicing, improvement, manufacture, fabrication, altera-
tion, repair, or maintenance of that tangible personal property, the
service shall be presumed to be used where the property has acquired an
actual situs if the property has acquired such situs; or
3. If the service directly relates to the sales to, or affects, enhances, or
protects a purchaser's or user's local market (which is an area not to
exceed a single state or Standard Metropolitan Statistical Area), the
service shall be presumed to be used where the local market exists; or
4. If the service directly relates to or is associated with compliance,
avoidance, evasion, or comprehension of the laws of a state or a single
political subdivision thereof or civil or criminal liability under the laws
of a single state or a political subdivision thereof, then the service shall
be presumed to be used in that state; or
5. If the service directly relates to or is associated with, any matter
litigated in a court of law or pursued in an administrative tribunal,
then the service shall be presumed to be used where the court or
administrative tribunal is situated; or
6. If subparagraphs 1., 2., 3., 4., and 5. are not applicable and the
service directly relates to real property, tangible personal property, or a
local market, notwithstanding the limitation in paragraph 3., located
both within and outside of this state and more than 50% of that real
property, tangible personal property, or single local market is located in
this state, the service shall be presumed used in this state to the same
extent that the real property, tangible personal property, or local market
is located in this state. The portion of the service presumed used in this
state under this provision shall be equal to the proportion that the real
property, tangible personal property, or local market located in this state
bears to the total real property, tangible personal property, or local
market to which the service relates. For purposes of this provision,
determinations concerning real property and tangible personal property
shall be based on the value of the property and determinations
concerning a local market shall be based on the population within that
local market or such other measures as may reasonably define the local
market. Tangible personal property is located in this state only to the
extent that it has acquired an actual situs in this state; or
7. If subparagraphs 1. through 6. are not applicable and the
purchaser or user is exclusively doing business in a single state, the
service shall be presumed.to be used where the purchaser or user is
exclusively doing business; or
8. If subparagraphs 1. through 7. are not applicable and the service
relates to the business or investment activities of one or more offices,
departments, or other divisions located entirely within Florida or
entirely outside Florida, the service shall be presumed to be used where
such offices, departments, or other divisions are located; or
9. If subparagraphs 1. through 8. allocate the use of a service to a
particular location, and that allocation does not reasonably reflect where
the service is used, the taxpayer may use or the department may require
the use of another method of allocation which reasonably reflects the
location at which the service is used.
(d)(e) Notwithstanding paragraphs (a), and (b)S and (c), interstate
and international transportation services shall be presumed to be used

(4) Notwithstanding paragraphs (a) ( and ( advertising shall be
presumed to be enjoyed in this state to the extent that the sales priee
er eest price of sneh services is apportioned to this state pursuant to

(e) Notwithstanding paragraphs (a), and (b) and (c), the use benefit
of a service provided to the estate of a decedent shall be presumed to be
used enjoyed where the decedent last established residency.
Section 66. Effective January 1, 1988, subsections (6), (7), (8), (9),
(10), (11), (12), (13), (14), (15), (16), (17), (18), (19), (20), (21), (22),
(23), (24), (25), (26), (27), (28), (29), (30), (31), (32), (33), (34), (35),
(36), (37), (38), (39), (40) and (41) of section 212.0592, Florida Statutes,
as created by chapter 87-6, Laws of Florida, and amended by chapter
87-101, Laws of Florida, and subsections (42), (43), (44), (45), (46),
(47), (48), (49), (50) and (51) of said section, as created by chapter
87-101, Laws of Florida, are hereby repealed.
Section 67. Effective January 1, 1988, subsection (5) of section
212.0592, Florida Statutes, as created by chapter 87-6, Laws of Florida,
and amended by chapter 87-101, Laws of Florida, is amended to read:
212.0592 Exemptions from sales or use tax on services.-There shall
be exempt from the tax on the sale or use of services imposed by
ss. 212.059(1) or (2), 212.0594, and 212.0595 the following:
(5) Services between members of a business an affiliated group of
corporations, as defined in s. 212.02. However, this exemption shall
apply only to the sale or use of any service between any such members
who are included in the affiliated group for purposes of this part. If the
exemption provided in this subsection is not applicable, the sales price
or cost price of the service between each unincluded member and any
other member shall be based upon the fair market value of the service.
The sale or use of services between divisions that may be separate
taxpayers within the same corporation shall be exempt. Nothing
herein shall be construed to require the filing of a consolidated return
under chapter 220 in order to qualify for the exemption granted by this
subsection.
Section 68. Effective January 1, 1988, subsections (1), (2), and (3) of
section 212.0593, Florida Statutes, as created by chapter 87-6, Laws of
Florida, and amended by chapter 87-101, Laws of Florida, are amended
to read:
212.0593 Administration of s. 212.0592(1).-
(1) Each multistate business having sales and use tax nexus in this
state under this part shall obtain from the department an exempt
purchase permit prior to claiming an exemption under s. 212.0592(1).
For purposes of this section, a corporation doing business only in
Florida may obtain an exempt purchase permit as a multistate business
if it is part of a business group, as defined in s. 212.02, which is doing
business in this state and outside of this state. Such permit shall be
used when purchasing any service sold in this state except advertising,
regardless of whether the service is used in this state. Upon
purchasing a service from a dealer registered under this part,
presentation by said multistate business of a valid exempt purchase
permit shall absolve the selling dealer from the responsibility of
collecting any sales or use tax which may be due on the service. The
purchaser shall self-accrue any taxes which may be due on the service
and remit them to the department in the manner and under the
requirements applicable to dealers under this part, subject to such
additional reporting requirements as the department may prescribe.
(2) Any business or group of businesses without sales and use tax
nexus in this state under this part, and any individual resident in
another state claiming an exemption under s. 212.0592(1), shall obtain
an exempt purchase permit under subsection (1) and consent to be
subject to the jurisdiction of this state solely for the purpose of
verifying entitlement to the exemption enforcement of the sales tax en
services, or shall execute and present to the selling dealer an exempt
purchase affidavit on a form prescribed by the department. The
affidavit shall include the federal employer identification number of
the business or social security number of the individual, the purchas-
er's location and mailing address, a statement that the business does

92

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not have sales and use tax nexus in this state under this part or that
the individual is not a resident of this state, the name and registration
number of the selling dealer, and a statement of consent by the
purchaser to be subject to the jurisdiction of this state solely for the
purpose of verifying entitlement to the exemption enfereement of the
sales tax on services. The affidavit shall also contain such other
information as the department may prescribe. Acceptance of a valid
exempt purchase permit or affidavit shall absolve the selling dealer
from the responsibility of collecting any sales tax which may be due on
the service.
(3) Each dealer shall maintain a monthly log showing each
transaction for which sales tax was not collected because of the
presentation of an exempt purchase permit or exempt purchase
affidavit under this section. The log shall identify the purchaser, the
exempt purchase permit number if applicable, the service sold, the
price of the service and such other information as the department may
prescribe. The logs and all affidavits accepted by the dealer shall be
retained by the dealer for 5 years and made available to the
department upon request. Failure to maintain these records or to make
them available to the department shall subject the dealer to a $100
mandatory penalty.
Section 69. Effective January 1, 1988, section 212.0594, Florida
Statutes, as created by chapter 87-101, Laws of Florida, is amended to
read:
212.0594 Construction services; special provisions.-
(1) For purposes of this section:
(a) "Prime contractor" means:
1. A person who enters into a contract to construct, improve, alter, or
repair realty with the person for whose benefit the realty is being
constructed, improved, altered, or repaired, unless the contract specifies
that the person for whose benefit the realty is being modified is
assuming the responsibilities of a prime contractor pursuant to
subparagraph 3., and that person is the final consumer of the realty;
2. A person who enters into a contract to undertake the primary
responsibility for supervising and disbursing payments for the con-
struction, improvement, alteration or repair of realty with the person
for whose benefit the realty is being constructed, improved, altered, or
repaired, in which case, all other persons involved in the construction
who would otherwise qualify as prime contractors under subparagraph
1. shall be deemed subcontractors;
3. A person who undertakes, on a speculative basis or for his own
use, the construction, improvement or alteration of realty; or
4. A person who manufactures factory-built buildings.
(b) "Subcontractor" means a person who enters into a contract to
provide construction services to a prime contractor or to another
subcontractor.
(c) "Construction services" means any activity directly involving the
construction, alteration, improvement or repair of realty.
(d) constructionn support series" means arehiteetural, egineee-
ing drafting, su vying, land planning, landscape design and interior
design services when such services directly relate to the construction,
alteration, improvement o repair of realty.
(d)(e) "New Construction" means factory-built buildings and any
construction, alteration, improvement or repair of realty for which the
contract price or eest price, including building materials used, exceeds
$5000.
(e)(-f "Building materials" means tangible personal property physi-
cally incorporated into the affected realty.

(f)(g) "Contract price" means the total consideration paid pursuant to
a contract for the construction, alteration, improvement or repair of
realty, or in the case of new construction undertaken on a speculative
basis, the total consideration paid pursuant to a contract to purchase

the improved realty. However, the following may be excluded from the
contract price shall not include the:

October 7, 1987

furtheranee of a eontraet with a governmental entity described in
21.8( the ta shall not apply
h4 Feor the eenstuetion e or repair of property used primarily fee
publice wershipk the tax shall net apply

E OF REPRESENTATIVES 93

1. The fair market value of land and any improvements to the land
existing prior to the contract for the construction, alteration, improve-
ment or repair of the realty;. or the value of eonstruetion support
services .provided by other than employees of the prime eontraeter.
2. The fair market value of any improvements to the land to the extent
the construction of the improvements has previously been taxed
pursuant to this section;
3. Payments to subcontractors;
4. Payments for services, other than construction services, taxable
pursuant to s. 212.059 or s. 212.0595;
5. Payments for government fees and taxes specific to the construction
project;
6. Payments for insurance and bonds specific to the construction
project; and
7. Payments made to financial institutions to reduce the permanent
financing costs on the purchase of residential construction.
(g)h)W "Fair market value" means 120 percent of the property's
assessed value for ad valorem tax purposes, as reflected by the most
recent assessment roll for the county prior to the new construction,
unless the prime contractor can demonstrate to the satisfaction of the
department by proof of comparable sales, actual purchase price, or
appraisal, that such assessment understates the value of the property.
(h)(4 "Cost price" means the direct and indirect costs of construction,
including but not limited to, the cost of materials used, labor and
service costs, interest charged, and overhead expenses; however, "cost
price" shall not include any item that may be excluded from the
definition of "contract price."' without any deduetion whatsoever.
(2) The tax imposed by s. 212.059 shall be applied to the sale of
construction services in the following manner:
(a) For new construction undertaken pursuant to a contract, or
undertaken on a speculative basis bat sold within 6 months of
completion of the new eenstruetion, the tax shall be imposed upon 50
percent of the contract price.
(b) For new construction undertaken for the prime contractor's own
use, er undertaken on a speculative basis and not sold within 6 months
of completion, the tax shall be based upon 50 percent of the cost price.
(c) For new construction consisting of factory-built buildings, the tax
shall be imposed upon the cost price- less the amount paid for building
materials incorporated ie s buildings.
4 For new eonstruction undertaken feo the prime contraeter's own
use or undertaken on a speculative basis, and directly related to real
p'operty egiste'-ed er exempt pursuant t chapter 49 er wreguated
under chapter 721, the tax shall be imposed upon percent of the eest

(e4 Fr eeonsteuetisn other than new eenstruetion, the ta shall be

prime eontraeteor for building materials incorporated into the realty,
Howe.e*. the -dedetion- fee building materials shall only apply if the
prime eontraeter has previously paid the sales tax on such materials,
and the written contract er invoice provided by the prime contraeter to
the person fee whom the construction was done specifically itemises
the building materials and the price paid by the prime contraeter fee
saeh materials.
(d)(fy If new construction is undertaken pursuant to a contract that
is not an arm's-length transaction, or if new construction is undertak-
e eon a speculative basis and the realty is then sold within 6 months
pursuant to a ientraet that is net an arm's length transaction, the tax
shall be imposed upon SQ percent ef the cost price of the new
construction, and not upon the contract price.
(g) Fer tee construction eo repair of roads pursuant to er if

JOURNAL OF THE HOUSE OF REPRESENTATIVES

(4i The tax n oeenstruetion support services shall be imposed upon
the total sales priee for seh services and shall be due and payable in
aecordanee with the provisions of e 212.0594)
(e)4j Prime contractors for new A cnstruetion shall be considered the
final consumer of construction services consumed i improving realty.
The owner of the affected real property shall be considered the final
consumer of construction services other than these related to aew
eonstrcetion. The prime contraeter or subeentraetr who purchases or
uses building materials shall be eensidered the final eensumer of the
building materials.
(f) Construction services performed pursuant to or in furtherance of a
contract with a governmental entity described in s. 212.08(6) or an
exempt entity described in s. 212.08(7)(o) or a residential condominium
association or residential cooperative association for improvements to
the common elements or association property shall be exempt from the
tax.
(g) Notwithstanding other provisions of this subsection, no tax shall
be imposed upon construction services performed in construction of
residential property. However, building materials used in construction
of residential property shall be subject to the sales or use tax when
purchased, or if purchased pursuant to a resale certificate, shall be
subject to a use tax when first used. For purpose of this paragraph,
"Construction of residential property" means the erection of a new
single-family or multi-family structure and does not include construc-
tion of structures designed for commercial use, or repair, renovation or
modification of any existing structure.
(h)(k4 Notwithstanding other provisions of this subsection, no tax
shall be imposed upon construction services ao eonstruetien support
services performed by one's own employees if the services are
performed for an employer who is incidentally engaged in improving
real property, such improvements are made in the furtherance of the
employer's primary business, and the employer is not in the business of
providing construction services. In addition, no tax shall be due on
construction services performed by an individual who is engaged in the
construction of his own primary residence.
4f- As an alternative method Lfor eemputing the tax imposed in this
subseetion, the prime eentraetar may compete and pay the tax en
eenstruetion services en new eenstraetion, as fellows:
4= The tax en eonstruction services purchased by prime contractors
shall be due and payable y the prime eeontraet at the time
consideration is paid Lf sueh services.
T. The tax e purchases of eeonstruetion ser.iees by prime eontraetors
shall he based eo the total eeonsideration to the subcontractor.
However, if the written proposal, contract, Or interim eO final invoiee of
the subeentraetor specifically describes, itemizes and states the price
paid by the s'ubcontraetar f the building materials purchased lby the
subeontraetor and incorporated into the improvement i fulfillment of
his responsibilities ueiliti under the subeentraet, the tax shall be based en the
total consideration less the price of said building materials.
3. The tax en the eenstruetion services any prime centraetor provides
with respect to new eenstruetion fLr himself or others shall be based
upon the eost pfiee to the prime contraeter of the srvies he provides
However the est oaf building material s p urehased fby the prime
eentete aend ineerporated into the new een.stretien and amounts
paid to e subeentraetors pon which a sales tax has been paid shall note
be included in the eest price The tax shall be dee and payable as
otherwise provided in this part at the time the eontraet for new
construction is fulfilled r within 80 days ater the eeifeate e
oeeupaney is issued whichever is sooner. The retail sale eo new
eenstuetioen Los which the prime eontraeter has paid tax pursuant to
this paragraph shal be exempt from the tax imposed by this seetien
4; This alternative methked for eemputing the tax shall apply to
eenstruetion services purchasedd er provided by a prime eentraeter for
e eonstretie n prajeets begun en ar after July 4- 5-18&
SA prime eontraeetr shall make the election to eempute the tax
pursuant to this paragraph en a form prescribed by thD department

Any eseh election shall apply to all eonstruetion services purchased er
provided by the prime cntraetor during the term of the eleetieon The

department shall promulgate rules regarding the application of the
election to eenstruetien projects in progress at the time the election is
made and eenstraetion projects whieh are in progress at the time the
election is terminated. A prime eentraeto may not change the method
fer the payment ef the tax more than enee during any 12 month period.

(3) The tax imposed by s. 212.059 on construction series shall be
due and payable in the following manner:
(a) Prime contractors and subcontractors licensed or registered
pursuant to chapter 489 shall be entitled to obtain a resale permit from
the department to be utilized when purchasing building materials.
However, when building materials are purchased tax exempt by a
person other than a governmental entity described in s. 212.08(6) or an
exempt entity described in s. 212.08(7)(o), or a residential condominium
association or a residential cooperative association for construction
related to the common elements or association property and are used in
construction done pursuant to or in furtherance of a contract with such
an entity, the person purchasing the materials shall be deemed the
ultimate consumer of the materials and shall be responsible for payment
of a use tax on the sales price of the materials. The use tax shall be due
when the materials are first used.

(b)(a) The Prime contractors eentraetor shall be responsible for
collecting and remitting the tax on construction they perform services
performed by himself and by his suberntraeters.
(c)(b) Subcontractors shall be responsible for collecting and remitting
net be required to eoleet the tax on construction services they perform.

(d)(e) For new construction undertaken pursuant to a contract, or
undertaken on a speculative basis, the tax shall be due when the prime
contractor or subcontractor is paid for the construction he performed.
seeeives paymienits under d the eentraet, If the eentraet pr ee is puai in
draws o in stallments, the amount ef taE to be paid with respect to
eaeh seh draw or installment, before application f the dealer credit,
shall be that proportion ef the tax dte eo the total contract priee whieh
the amount of the draw oe installment hears ta the total eeontraet pVieer

(44 Fo new eenstractien under en ae speculative basis, or fo
the prime eentraetoer's wn se- partial payment of the tax shall be due
at sueh time payment is made by the prime eentraeto t to the
subeentraeter based on 50 percent of the amount ef sueh payment. Any
tax amounts remaining shall be due 30 days aefer a ertificate of
oeeupancey is issued, or. if noe ertifeat e eeoupaney is required, when
the new eenstraetion is first put te its intended ase.
(e) For new construction undertaken for the prime contractor's own
use, the tax shall be due when a certificate of occupancy is issued, or if
no certificate of occupancy is required, when the new construction is
first put to its intended use. However, the tax on construction performed
by a subcontractor shall be due when the subcontractor is paid for the
construction he performed.
(4) For eenstr tion other than new eenstruetion, the tax shall be due
when the prime eontraeteor reeives payment for the eeonstration
services r-endered.
(f)(g) Taxes due and payable pursuant to this section shall be
remitted in accordance with s. 212.11.

(g)(h) No unit of local government shall issue a certificate of
occupancy for new construction until the prime contractor certifies, on
a form promulgated by the department and submitted to the local
government, that the new construction is substantially complete. Such
forms shall be provided to local governments by the department, and
completed forms shall be returned monthly to the department by the
local governments.
(4) Notwithstanding other provisions of this section to the contrary,
the following provisions shall apply with regard to the taxation of road
construction done pursuant to a contract:
(a) For road construction done pursuant to or in furtherance of a

contract with a governmental entity described in s. 212.08(6) or an
exempt entity described in s. 212.08(7)(o) the tax shall be imposed upon
fifty percent of the contract price.

October 7, 1987

94

(b) For other road construction, the tax shall be imposed upon one
hundred percent of the contract price.
(c) For purposes of this subsection:
1. "Contract price" means the total consideration paid pursuant to the
contract to construct the road. However, if the contract price includes
building materials upon which the sales or use tax has previously been
paid, "contract price" may be reduced to reflect the value of such
materials and tax.
2. "Road construction" means construction of roads as defined in
s. 334.03(17) and private roads similarly defined and parking lots,
airport landing areas, and helicopter pads.
(d) The prime contractor shall be responsible for self-accruing and
remitting all taxes due pursuant to this subsection. Subcontractors shall
not be required to remit tax.
(e) Prime contractors and subcontractors certified pursuant to
Chapter 337 shall be entitled to obtain a resale permit from the
department to be utilized when purchasing building materials.
(f) This tax shall be in lieu of any tax that would otherwise be
imposed on road construction pursuant to s. 212.06.
(g) The tax imposed pursuant to this subsection shall be due when the
prime contractor is paid. If the contract price is paid in draws or
installments, the amount of tax to be paid with respect to each such
draw or installment, before application of the dealer credit, shall be that
proportion of the tax due on the total contract price which the amount of
the draw or installment bears to the total contract price.

95

The ratio shall be applied eaeh month to the earlier's total systemwide
gross purchases of tangible personal property and services otherwise
taxable in Florida.
(2)-) It is the legislative intent that air carriers are hereby
determined to be susceptible to a distinct and separate classification
for taxation under the provisions of this part, if the provisions of this
section are met.
(3)(4) The election provided for in this section shall not be allowed
unless the purchaser makes a written request, in a manner prescribed
by the Department of Revenue, to be taxed under the provisions of
subsection (1) (2), and such person registers with the Department of
Revenue as a dealer and extends to his vendor at the time of purchase,
if required to do so, a certificate stating that the item or items to be
partially exempted are for the exclusive use designated herein.
Otherwise all purchases of taxable property and services purchased in
this state shall be subject to taxation.
(4)5) Notwithstanding other provisions of this part to the contrary,
any air carrier eligible for the election provided in subsection (1) which
does not so elect shall be subject to the tax imposed by this part on the
purchase or use of services and tangible personal property purchased
or used in this state, as well as other taxes imposed herein.
Section 72. Paragraph (g) of subsection (14), paragraph (a) of
subsection (19) and subsection (21) of section 212.02, Florida Statutes,
1986 Supplement, as amended by chapters 87-6 and 87-101, Laws of
Florida, are amended and, effective January 1, 1988, subsection (2) of
said section is amended to read:

(5)(4) The following provisions of this part shall not apply with 212.02 Definitions.-The following terms and phrases when used in
regard to the tax on construction services: this chapter have the meanings ascribed to them in this section, except
where the context clearly indicates a different meaning:

(a) Section 212.02(5), the definition of "cost price."
(b) Seetion 212.02 (21, the definition of "sales price.
(b)(e) Section 212.059(3), regarding the collection and remittance of
the tax.
(c)(d4 Section 212.059(4), regarding the time the tax is due.
(d)(e) Section 212.0591(4), regarding taxation of transactions pre-
viously taxed.
(e)(f) Section 212.0591(6), regarding separate statement of services
and real property.
(f)(g) Section 212.0591(7), regarding separate statement of taxable
and exempt services.
(g)(h) Section 212.0592(3), regarding occasional or isolated sales.
(h)(i) Section 212.0592(4), regarding services sold to partnerships.
(i)fj) Section 212.0592(5), regarding services sold between members
of an affiliated group.
Section 70. Effective January 1, 1988, section 212.0595, Florida
Statutes, as created by chapter 87-6, Laws of Florida, and amended by
chapters 87-72 and 87-101, Laws of Florida, is hereby repealed.
Section 71. Effective January 1, 1988, section 212.0598, Florida
Statutes, as created by chapter 87-101, Laws of Florida, is amended to
read:
212.0598 Special provisions; air carriers.-
(1) Notwithstanding other provisions of this part to the contrary, any
air carrier utilizing mileage apportionment for corporate income tax
purposes in this state required by the United States Department of
Transportation to keep records aeeerding to said department's standard
classification of aeeounting may elect, upon the conditions prescribed
in subsection (3), to attribute to this state pursuant to
s. 212.0591(9)(b)4. use or consumption of all services and tangible
personal property it purchases or uses. (4) to be subject to the tax
ipo.sed by this part on series an tangible personal property
ateeording to the proisions of this seetion.
4) The basis of the tax shall be the ratio of Florida mileage to total
mileage as determined pursuant to part IV of chapter 214. The ratio
shall be determined at the else of the earlier's preceding fiscal year-

(2) "Business Affiliated group" is defined as follows:
(a) If the members of the group are taxed under s. 212.0591(9)(b),
"business group" means- an affiliated group of corporations, as defined
in s. 1504(a) of the Internal Revenue Code, whose members are
includable under s. 1504(b), (c), or (d) of the Internal Revenue Code,
and are eligible to file a consolidated tax return for Federal corporate
income tax purposes, or mutual insurance companies which are
members of one insurance holding company system subject to
s. 628.801; however, s. 1504(b)(2) shall not apply to this definition.
However, the taxpayer may elect, pursuant to rules of the department
governing the procedure for making and amending such election, to
define its business affiliated group in a manner which excludes any
member who has no tax nexus in this state and any member whose
business activities are unrelated to the business activities of other
members of the group. However, in no event shall a parent corporation
of an included member be excluded from the affiliated group.
(b) If the members of the group are taxed under s. 212.0591(9)(c),
"business group" means one or more chains of related corporations
meeting the stock ownership or direct control requirement set forth in
this paragraph. The stock ownership requirement is met if 80 percent of
the voting power of one or more corporations or chains of corporations is
owned directly or indirectly by a common parent. The direct control
requirement shall be applicable to non-stock organizations and shall be
met if the common parent directly controls at least one of the other
includable corporations, and each of the includable corporations (except
the common parent) is controlled directly by one or more of the other
includable corporations. For purposes of this definition, "control"
means, in the case of non-stock organization, the direct or indirect
control of at least 80 percent of its directors. A director is controlled by
an organization if such organization has the power to remove such
director and designate a new director. "Includable corporations" means
any corporation except those listed in paragraphs (2) through (7) of
section 1504(b) of the Internal Revenue Code. The term "related
corporations" or "related group of corporations" shall also include
mutual insurance companies which are members of one insurance
holding company system subject to s. 628.801. However, the term does
not include members whose activities are not integrated with, interde-
pendent upon, or contributory to a flow of value among the other
members of the group, unless, for the purposes of this paragraph, the
taxpayer elects otherwise.

October 7, 1987

JOURNAL OF THE HOUSE OF REPRESENTATIVES

96 JOURNAL OF THE HOUSE

(14) "Lease," "let," or "rental" means leasing or renting of living
quarters or sleeping or housekeeping accommodations in hotels,
apartment houses, roominghouses, tourist or trailer camps and real
property, the same being defined as follows:

(g) "Lease," "let," or "rental" also means the leasing or rental of
tangible personal property and the possession or use thereof by the
lessee or rentee for a consideration, without transfer of the title of such
property, except as expressly provided to the contrary herein. The term
"lease," "let," "rental" or "service" does not mean hourly, daily, or
mileage charges, to the extent that such charges are subject to the
jurisdiction of the United States Interstate Commerce Commission,
when such charges are paid by reason of the presence of railroad cars
owned by another on the tracks of the taxpayer, or charges made
pursuant to car service agreements. However, where two taxpayers, in
connection with the interchange of facilities, rent or lease property, each
to the other, for use in providing or furnishing any of the services
mentioned in s. 166231, the term "lease or rental" means only the net
amount of rental involved.

(19)(a) "Retail sale" or a "sale at retail" means a sale to a consumer
or to any person for any purpose other than for resale in the form of
tangible personal property or services, and includes all such transac-
tions that may be made in lieu of retail sales or sales at retail. "Retail
sale" does not include fee-sharing for services described in
s. 475.01(1)(c) 475.01 by persons licensed under chapter 475. A sale of
a service shall be considered a sale for resale only if:
1. The purchaser of the service provides a direct and identifiable
benefit to a single client or customer of the purchaser does net use or
eensuf e the service but aets as a broker eor intermediary in procuring
a service for his elient or eustomer;
2. The purchaser of the service buys the service pursuant to a
written contract with the seller or other written documentation which
and sueh contract identifies, by name or other evidence sufficient for
audit purposes, the client or customer for whom the purchaser is
buying the service; and
3. The purchaser of the service separately states the value of the
service purchased at the purchase priee in his charge for the service on
its subsequent sale;
4- The service, with its value separately stated, will be taxed under
this part in a subsequent sale, unless otherwise xempt pursuant to
f 2a1.0592(14; and
4.56 The service is purchased pursuant to a service resale permit by a
dealer who is primarily engaged in the business of selling services.
However, the department may authorize the issuance of a service resale
permit to a dealer who is not primarily engaged in the sale of services if
such dealer is otherwise regularly engaged in brokering services for
clients or customers, and shall issue a resale permit to a dealer
primarily engaged in contract work for a governmental entity described
in s. 212.08(6). The department shall provide by rule for the issuance
and periodic renewal every 5 years of such resale permits.
However, a sale, to other than an end user, of telecommunication
services consisting of a right of access for which an access charge, as
defined in s. 203.012(1), is imposed, is a sale for resale.
(21) "Sales price" means the total amount paid for tangible personal
property or services, including any services that are a part of the sale
and any tangible personal property that is part of the service, valued
in money, whether paid in money or otherwise, and includes any
amount for which credit is given to the purchaser by the seller, without
any deduction therefrom on account of the cost of the property sold, the
cost of materials used, labor or service cost, interest charged, losses, or
any other expense whatsoever. "Sales price" also includes the consider-
ation for a transaction which requires labor or material to alter,
remodel, maintain, adjust, or repair tangible personal property.

Trade-ins or discounts allowed and taken at the time of sale shall not
be included within the purview of this subsection. "Sales price" does
not include travel and entertainment expenses, postage, or taxes or other
governmental fees advanced on behalf of a client, if such expenses or
charges are directly reimbursed at cost by the client.

E

OF REPRESENTATIVES October 7, 1987

Section 73. Effective January 1, 1988, subsections (22) and (24) of
section 212.02, Florida Statutes, as created by chapter 87-6, Laws of
Florida, are amended to read:

(Substantial rewording of subsections. See s. 212.02(22) and (24),
F.S., for present text.)
212.02 Definitions.-The following terms and phrases when used in
this chapter have the meanings ascribed to them in this section, except
where the context clearly indicates a different meaning:
(22) The term "service" or "professional services" as used in this part
means the following activities usually provided for consideration:
(a) Landscape and horticultural services as described in SIC Group
Number 078, unless the services are provided for residential property;
and animal specialty services as described in SIC Industry Number
0752, unless the service relates to agricultural products as defined in
s. 618.01(1).
(b) Construction services as described in SIC Major Groups 15, 16
and 17 and as provided in s. 212.0594, except grave excavation services
described in SIC 1799.
(c) Printing services as described in SIC Group Number 279.
(d) Coating, engraving and allied services as described in SIC Group
Number 347.
(e) Sightseeing bus and limousine and automobile rental with driver
services as described in SIC Industry Number 4119, passenger trans-
portation charter services as described in SIC Group Number 414, and
services of terminal and service facilities for motor vehicle passenger
transportation as described in SIC Group Number 417.
(f) Terminal and joint terminal maintenance facility services for
motor freight transportation as described in SIC Group Number 423.
(g) Air transportation services described in SIC Major Group 45
except international air transportation services. 'International air
transportation" shall have the same meaning as used in the Federal
Aviation Act.
(h)l. Unless the service is provided to a nonresident entity or
nonresident person as defined in Rule 3C-15.003, Florida Administra-
tive Code, the following services of a financial nature for which a fee or
charge is specifically imposed: use of safety deposit boxes; use of night
deposit services; issuing cashier's checks; issuing traveler's checks;
issuing money orders; issuing bank drafts; preparation of tax returns;
copies of documents; stop payment services; return check services, unless
due to insufficient funds; service as personal representative of estates of
decedents; credit information and reporting services; overdraft services;
hold mail services; guardianship services; credit card and charge card
membership fees; cash vault services; financial planning services; public
accounting services of a type not customarily performed in connection
with a customer account; or data processing services not otherwise

2. The following services of a financial institution are excluded:
a. Any service for which the charge is waived or imputed; or
b. Investment advisory services.
3. For the purposes of this paragraph, the term "financial institution"
means a financial institution as defined in s. 655.005; any subsidiary
thereof; any holding company, other than a diversified savings and loan
holding company as defined in s. 408 of the National Housing Act,
which controls a financial institution; any subsidiary of such holding
company; any Federal Reserve Bank; and any Federal Home Loan
Bank.
(i) Investment advisory services provided by an investment adviser as
defined in s. 517.021(13)(a), except investment advisory services pro-

vided to an investment company registered under the Investment
Company Act of 1940 or to any employee benefit plan subject to the
provision of the Employee Retirement Security Act of 1974, as amended,
or to any person exempt from federal income tax under the Internal
Revenue Code, as amended.

JOURNAL OF THE HOUSI

(j) Provision of title insurance as described in SIC Group Number 636
that is in excess of the risk premium rate promulgated pursuant to
s. 627.782.
(k) Laundry, cleaning and garment services as described in SIC
Group Number 721, except coin-operated laundries and dry cleaning as
described in SIC Industry Number 7215 and personal laundry services
sold to residents of nursing home facilities, adult congregate living
facilities, and hospices licensed under chapter 400; photographic
services as described in SIC Group Number 722; and shoe repair
services, shoe shine services, and hat cleaning services as described in
SIC Group Number 725.
(1) Massage, steam bath, turkish bath, tanning salon, and tattoo
parlor services described in SIC Industry Number 7299.
(m) Physical fitness facility services described in SIC Industry
Number 7991, regardless of the nature or status of the provider and
notwithstanding any other exemption provided by s. 212.08.
(n) Consumer credit reporting agency services, mercantile reporting
agency and adjustment and collection agency services as described in
SIC Group Number 732 except loan servicing contracts.
(o) Mailing, reproduction, commercial art and photography, and
stenographic services described in SIC Industry Group Number 733.
(p) Pest control and maintenance services related to dwellings and
other buildings as described in SIC Group Number 734, unless the
services are provided for residential property.
(q) Miscellaneous business services as described in SIC Group
Number 738, except for news syndicate services described in SIC
Industry Number 7383, and except security guard services provided for
residential property.
(r) Personnel supply services described in SIC Industry Group
Number 736, provided that help supply services provided pursuant to a
contract to supply such services for a term in excess of 4 weeks shall not
include the cost of payroll and related employment benefits of the
employees so provided. If the help service is a non-taxable health service,
it is excluded.
(s) Computer programming, data processing, and other computer
related services described in SIC Industry Group Number 737, unless
such services are performed for a financial institution by a service
corporation of that financial institution, provided:
1. All capital stock of the service corporation may be purchased only
by financial institutions.
2. Every eligible financial institution shall own an equal amount of
capital stock or shall, on such uniform basis as the service corporation
shall determine, own an amount of such stock equal to a stated
percentage of its assets or savings capital at the time the stock is
purchased, or an amount of such stock equal to its pro rata share of
accounts serviced.
3. As used in this paragraph, "financial institution" means a
financial institution as defined in s. 655.005.
(t) Coin-operated amusement devices described in SIC Industry
Number 7993.
(u) Legal services as described in SIC Major Group 81 except for:
1. Legal services rendered by an attorney to a client to the extent that
the right to counsel guaranteed pursuant to either the Sixth Amendment
to the United States Constitution or Article I, Section 16 of the Florida
Constitution is applicable to such legal services; and
2. Legal services, provided to a natural person, which relate to child
support, dissolution of marriage, enforcement of civil rights, bankruptcy
proceedings, or social security claims.
(v) Engineering, architectural and surveying services as described in
SIC Group Number 871.
(w) Accounting, auditing and bookkeeping services described in SIC

Industry Group Number 872, and tax preparation services described in
SIC Industry Group Number 729.

October 7, 1987

a vessel, or property used at a port authority for fueling such vessels.
9. Property used as an integral part of the production of motion
pictures on film or videotape performance of qualified production
service as defined in s6 212.05924Xa e).

OF REPRESENTATIVES 97

(x) Automotive repair services described in SIC Industry Group
Numbers 753 and 754, except coin-operated car washes and except
emergency road services for which the total consideration is less than
$10.
(y) Miscellaneous repair services as described in SIC Major Group 76,
except excluded are horseshoeing services.
(z) Management and public relations services described in SIC
Industry Group Number 874, and business consulting services de-
scribed in SIC Industry Number 8748.
(aa) Advertising agency services described in SIC Industry Number
7311, except media placement services.
(bb) The following media and other services: ratings services,
consulting services, broadcast engineering services, graphic and taping
services, booking charges or delivery fees, forecasting and other weather
services, marketing services, data processing, satellite services, studio
design services, market research services, security services, music license
fees, advertising copy writers, radio and television announcers, newspa-
per columnists, feature and news syndicates and comics, radio com-
mentators and weather forecasters, express delivery and courier services.
The term "service" or "professional service" shall exclude all services
provided and paid for pursuant to court order in a bankruptcy
proceeding and services provided in a proceeding to collect benefits
pursuant to the Social Security Act. The term "service" or "professional
service" shall also exclude maintenance assessments or fees paid by an
association member to a homeowners association, condominium owners
association, property owners association, mobile homeowners associa-
tion, or cooperative association.
(24) "SIC" means those classifications contained in the Standard
Industrial Classification Manual, 1987, as published by the Office of
Management and Budget, Executive Office of the President.
Section 74. Paragraph (a) of subsection (1) of section 212.031, Florida
Statutes, 1986 Supplement, as amended by chapters 87-6 and 87-101,
Laws of Florida, is amended to read:
212.031 Lease or rental of or license in real property.-
(1)(a) It is declared to be the legislative intent that every person is
exercising a taxable privilege who engages in the business of renting,
leasing, letting, or granting a license for the use of any real property
unless such property is:
1. Assessed as agricultural property under s. 193.461.
2. Used exclusively as dwelling units.
3. Property subject to tax on parking, docking, or storage spaces
under s. 212.03(6).
4. Recreational property or the common elements of a condominium
when subject to a lease between the developer or owner thereof and the
condominium association in its own right or as agent for the owners of
individual condominium units or the owners of individual condomin-
ium units. However, only the lease payments on such property shall be
exempt from the tax imposed by this chapter, and any other use made
by the owner or the condominium association shall be fully taxable
under this chapter.
5. A public or private street or right-of-way occupied or used by a
utility for utility purposes.
6. A public street or road which is used for transportation purposes.
7. Property used at an airport exclusively for the purpose of aircraft
landing or aircraft taxiing or property used by an airline for the
purpose of loading or unloading passengers or property onto or from
aircraft or for fueling aircraft.
8. Property used at a port authority as defined in s. 315.02(2)
exclusively for the purpose of oceangoing vessels or tugs docking, or
such vessels mooring on property used by a port authority for the
purpose of loading or unloading passengers or cargo onto or from such

98

10. Leased, subleased, or rented to a person providing food and drink
concessionaire services within the premises of a movie theater, a
business operated under a permit issued pursuant to chapter 550 or
chapter 551, or any publicly owned arena, sports stadium, convention
hall, exhibition hall, auditorium, or recreational facility. A person
providing retail concessionaire services involving the sale of food and
drink or other tangible personal property within the premises of an
airport shall be subject to tax on the rental of real property used for
that purpose, but shall not be subject to the tax on any license to use
the property. For purposes of this subparagraph, the term "sale" shall
not include the leasing of tangible personal property.

Section 75. Paragraph (b) of subsection (2) and paragraph (a) of
subsection (3) of section 212.054, Florida Statutes, 1986 Supplement,
as amended by chapter 87-6, Laws of Florida, is amended, and
subsections (7) and (8) are added to said section to read:

(2)(a) The tax imposed by the governing body of any county
authorized to so levy pursuant to s. 212.055 shall be a discretionary
surtax on all transactions occurring in the county which are subject to
the state tax imposed on sales, use, rentals, admissions, and other
transactions by this part. The surtax, if levied, shall be computed as
the applicable rate or rates authorized pursuant to s. 212.055 times
any amount of tax imposed by and paid to the state pursuant to this
part, except this section and s. 212.055, and shall be rounded to the
nearest penny.

(b) However:

1. The tax on any sales amount above $10,000 $1000 on any item of
tangible personal property and on long distance telephone service shall
not be subject to the surtax.
2. In the case of utility, telecommunication, or wired television
services billed on or after the effective date of any such surtax, the
entire amount of the tax for utility, telecommunication, or wired
television services shall be subject to the surtax. In the case of utility,
telecommunication, or wired television services billed after the last
day the surtax is in effect, the entire amount of the tax on said items
shall not be subject to the surtax.

3. In the case of written contracts which are signed prior to the
effective date of any such surtax for the construction of improvements
to real property or for remodeling of existing structures, the surtax
shall be paid by the contractor responsible for the performance of the
contract. However, the contractor may apply for one refund of any such
surtax paid on materials necessary for the completion of the contract.
Any application for refund shall be made no later than 15 months
following initial imposition of the surtax in that county. The applica-
tion for refund shall be in the manner prescribed by the department by
rule. A complete application shall include proof of the written contract
and of payment of the surtax. The application shall contain a sworn
statement, signed by the applicant or its representative, attesting to
the validity of the application. The department shall, within 30 days
after approval of a complete application, certify to the county
information necessary for issuance of a refund to the applicant.
Counties are hereby authorized to issue refunds for this purpose and
shall set aside from the proceeds of the surtax a sum sufficient to pay
any refund lawfully due. Any person who fraudulently obtains or
attempts to obtain a refund pursuant to this subparagraph, in addition
to being liable for repayment of any refund fraudulently obtained plus
a mandatory penalty of 100 percent of the refund, is guilty of a
misdemeanor of the second degree, punishable as provided in
s. 775.082, s. 775.083, or s. 775.084.
(3) For the purpose of this section, a transaction shall be deemed to
have occurred in a county imposing the surtax when:

(a) The dealer is located in the county and the sale includes tangible
personal property or services, except as otherwise provided herein;
provided, that the sale of any motor vehicle or mobile home of a class or

type which is required to be registered in this state or in any other state
shall be deemed to have occurred only in the county identified as the

October 7, 1987

residence address of the purchaser on the registration or title document
for such property;
(b) The event for which an admission is charged is located in the
county;
(c) The consumer of utility or wired television services is located in
the county, or the telecommunication services are provided to a
location within the county;
(d) The user of any aircraft or; boat moteor vehicle, or mobile home of
a class or type which is required to be registered, licensed, titled, or
documented in this state or by the United States Government imported
into the county for use, consumption, distribution, or storage to be used
or consumed in the county is located in the county; however, it shall be
presumed that such items used outside the county for 6 months or
longer before being imported into the county were not purchased for
use in the county. The provisions of this paragraph shall not apply to
the use or consumption of such items upon which a like tax of equal or
greater amount has been lawfully imposed and paid outside the
county;
(e) The purchaser of any motor vehicle or mobile home of a class or
type which is required to be registered in this state is a resident of the
taxing county as determined by the address appearing on or to be
reflected on the registration document for such property;
(f) Any motor vehicle or mobile home of a class or type which is
required to be registered in,this state is imported from another state into
the taxing county by a user residing therein for the purpose of use,
consumption, distribution, 'or storage in the taxing county; however, it
shall be presumed that such items used outside the taxing county for 6
months or longer before being imported into the county were not
purchased for use in the county;
(g)(Ae The real property which is leased or rented is located in the
county;
(h)(4) The transient rental transaction occurs in the county; or
(i)(g4 The delivery of any aircraft or- boat meteor vehicle, or mobile
home of a class or type which is required to be registered, licensed,
titled, or documented in this state or by the United States Government
is to a location in the county; however, the provisions of this paragraph
shall not apply to the use or consumption of such items upon which a
like tax of equal or greater amount has been lawfully imposed and paid
outside the county; or
(j)(h4 The dealer owing a use tax on purchases or leases is located in
the county.
(7) With respect to any motor vehicle or mobile home of a class or type
which is required to be registered in this state, the tax due on a
transaction occurring in the taxing county as herein provided shall be
collected from the purchaser or user incident to the titling and
registration of such property, irrespective of whether such titling or
registration occurs in the taxing county.
(8) The department shall promulgate by rule the brackets applicable
to transactions which are subject to the surtax.
Section 76. Subsections (1) and (3) of section 212.055, Florida
Statutes, as created by chapter 87-239, Laws of Florida, is amended to
read:
212.055 Discretionary sales surtaxes; legislative intent; authoriza-
tion and use of proceeds.-It is the legislative intent that any
authorization for imposition of a discretionary sales surtax shall be
published in the Florida Statutes as a subsection of this section,
irrespective of the duration of the levy. Each enactment shall specify
the types of counties authorized to levy; the rate or rates which may be
imposed; the maximum length of time the surtax may be imposed, if
any; the procedure which must be followed to secure voter approval, if
required; the purpose for which the proceeds may be expended; and
such other requirements as the Legislature may provide. Taxable
transactions and administrative procedures shall be as provided in

s. 212.054.
(1) CHARTER COUNTY TRANSIT SYSTEM SURTAX.-

JOURNAL OF THE HOUSE OF REPRESENTATIVES

JOURNAL OF THE HOUSE

(a) Each charter county which adopted a charter prior to June 1,
1976, and each county the government of which is consolidated with
that of one or more municipalities may levy a discretionary sales
surtax, subject to approval by a majority vote of the electorate of the
county.

(b)4- The rate shall be up to one-fifth (20 percent) or in incremental
parts thereof as established by the county governing body, of any
amount of tax imposed by and paid to the state pursuant to this part,
except this section and s. 212.054.
2J Notwithstanding subparagraph -3 for any county the government
of which is eenselidated with that of ene or more mncipalities upon
the retirement of any bnds whih were issued for the eonstrution of
roads and bridges and which were outstanding on the effective date of
this aet the rate shall be oene tenth (40 percent) of any amount of tax
impese 1by and paid to the state pursuant to this par except this
seetien and s 212 054
(c) The proposal to adopt a discretionary sales surtax as provided in
this subsection and to create a rapid transit trust fund within the
county accounts shall be placed on the ballot in accordance with law at
a time to be set at the discretion of the governing body.
(d) Proceeds from the surtax shall be:
1. Deposited by the county in the rapid transit trust fund and shall
be used only for the purposes of development, construction, equipment,
maintenance, operation, supportive services, including a countrywide
bus system, and related costs of a fixed guideway rapid transit system;
or
2. Remitted by the governing body of the county to an expressway or
transportation authority created by law to be used, at the discretion of
such authority, for the development, construction, operation, or
maintenance of roads or bridges in the county, the operation and
maintenance of a bus system, or the payment of principal and interest
on existing bonds issued for the construction of such roads or bridges,
and, upon approval by the county commission, such proceeds may be
pledged for bonds issued to refinance existing bonds or new bonds
issued for the construction of such roads or bridges.
(e) Notwithstanding the provisions of s. 212.054(5), the surtax shall
take effect on the first day of a month as fixed by the county governing
body; however, the surtax shall not take effect until at least 60 days
following the electors' approval.
(3) LOCAL GOVERNMENT INFRASTRUCTURE SURTAX.-
(a) The governing authority in each county may levy, for a period of
up to 15 years from the date of levy, a discretionary sales surtax of up
to one-eleventh 20 percent of any tax paid to the state pursuant to this
part, except this section, s. 212.054 and s. 212.0305. Sueh governing
authority may levy asuh suerta in an amount equal to 10 4 eor a0
percent of said state tax* The levy of the surtax shall be pursuant to
ordinance enacted by a majority vote plus one of the members of the
county governing authority and approved by a majority of the eleeters
of the county voting in a referendum on the surtax. If the governing
bodies of the municipalities representing a majority of the county's
municipal population adopt uniform resolutions establishing the rate
f the surtax and calling for a referendum on the surtax, the levy of the
surtax shall be placed on the ballot and shall take effect if approved by
a majority of the electors of the county voting in the referendum on the
surtax. No referendum eleetien called pursuant to the provisions of
this subsection shall be held between March 9 and Deccmber 84, 1988
(b) A statement which includes a brief general description of the
projects to be funded by the surtax and which conforms to the
requirements of s. 101.161 shall be placed on the ballot by the
governing authority of any county which enacts an erdinanee calling
for a referendum Oa the levy ef the surtax er in which the governing
bodies of the municipalities representing a majority of the county's
population adopt uniform resolutions calling for a referendum on the
surtax. The following question shall be placed on the ballot:

... .FOR the
... .AGAINST the

one-half-cent sales tax
one-half-cent sales tax

October 7, 1987

(j) Notwithstanding the provisions of s. 212.054(5), the surtax shall
take effect on the first day of a month as fixed by the ordinance adopted
pursuant to paragraph (3)(a); however, the surtax shall not take effect
until at least 60 days following the adoption of the ordinance or the
electors' approval whichever is applicable.

OF REPRESENTATIVES 99

(c) At least 7 days prior to the governing authorities' vote on the Local
Option Infrastructure Surtax ordinance, the governing authority shall
hold a public hearing to take public testimony on the adoption of the
surtax and to explain the need for the surtax and to describe the projects
to be funded by the surtax. At least 7 days prior to the public hearing,
the governing authority shall advertise in a newspaper of general paid
circulation in the county its intent to consider adoption of the surtax and
the time and location of the public hearing. The advertisement shall be
of the form:
NOTICE OF SALES TAX INCREASE
The (. .name of taxing authority. .) will soon consider a measure to
increase the sales tax rate by one-half percent in (. .name of county. ..)
county for a period of (. .number of years. .) years for the purpose of
funding infrastructure projects. All concerned citizens are invited to a
public hearing on the tax increase to be held on (. .date and time. .) at
(.. .meeting place.. .). A decision on the proposed tax increase will be
made on (.. .date and time .) at (. .meeting place. .).
(d)(e) Pursuant to s. 212.054(4), the proceeds of the surtax levied
under this subsection shall be distributed to the county and the
municipalities within such county in which the surtax was collected,
according to:
1. An interlocal agreement between the county governing authority
and the governing bodies of the municipalities representing a majority
of the county's municipal county population; or
2. If there is no interlocal agreement, according to the formula
provided in s. 218.62.
(4) The provisions of 212.054(24(b). relating to the sales amount
above $,000 e n any item of tangible personal property shall net apply
to the surtax authorized by this subsection. The sales amount above
$5000 en any item ef tangible personal property shall net be subject to
the surtax imposed by this subseetion.
(e) The department shall promulgate by rule the brackets applicable
to transactions which are subject to the surtax.
(f)1- The proceeds of the surtax authorized by this subsection and
any interest accrued thereto shall be expended within the county and
municipalities within the county, or, in the case of a negotiated joint
county agreement, within another county, to finance, plan, purchase
and construct and provide public facilities to meet the standards
established in the capital improvements element required by
s. 163.3177. infrastructure. Neither the preeeds neo any interest
aeerued thereto shall be used fa operational expenses of any
infrastreeture.
:. For the purposes of this paragraph "infrastructure" means any
fiaed capital ependiture or fixedapital eests asseeiated with the
eonstreutien, reeonstruetion; or improvement of public facilities which
have a life expectancy of r more years and any land acquisition,
land improvement, design and engineering eests related thereto.
(g) Counties and municipalities receiving proceeds under the
provisions of this subsection may pledge such proceeds for the purpose
of servicing new bond indebtedness incurred pursuant to law. Local
governments may use the services of the Division of Bond Finance of
the Department of General Services pursuant to the State Bond Act to
issue any bonds through the provisions of this subsection. In no case
may a jurisdiction issue bonds pursuant to this subsection more
frequently than once per year. Counties and municipalities may join
together for the issuance of bonds authorized by this subsection.
(h) Counties and municipalities shall not use the surtax proceeds to
supplant or replace user fees or to reduce ad valorem taxes existing
prior to the levy of the surtax authorized by this subsection.
(i) No ordinance enacting the levying of such surtax shall be adopted
after November 30, 1992. No referendum proposing the levying of such
surtax shall be held after November 30, 1992.